Yes, It is an engine out job. But, if the engine was well rebuilt 40K ago, If your certain about that, I think that just the repair of this seal and the rest of the bottom end seals would be sufficient.
These are tough and very durable engines, they are in fact MercedesBenz! Check the plugs for signs of oil problems, from rings or valve seals. If there is, you might consider more work.
If you have the means to remove the engine, this is a job you can do yourself, you just fixed your tach, that was a different type of repair for you. this is more "work" But it is do-able.
The member before my reply says there is a whole thread about the seal, it isn't that daunting. but to do it right, follow good advice to the letter. I'll help you if you want. I have done a few.
Allen