I took one of my fork legs apart to see if I could get a better answer to Gyrobob's problem. So, to review, here are the various parts we're talking about:
A - bushing
B - washer
C- seal
Here is the inside of the fork bottom. The arrow is pointing to the groove the bushing is supposed to seat into.
Here's the fork slid into the fork bottom and bushing part way into the groove.
This is about as far as it wants to go without some persuading. Notice there's a split in the bushing. That means the bushing is slightly larger than the groove in the fork bottom and is designed to hold itself in place with spring tension. The split will close up when the bushing is in place.
Now take whatever you're using for a seal installation tool -- a piece of PVC or something fancy -- and use it to tap the bushing into the groove. You can have the seal and washer completely off the fork or, if you like, you can have the washer on top of the bushing to spread the load from the tool. The bushing looks like this when it's in place.
When the bushing is fully seated, the seal goes in with just a little pressure and the retaining clip pops right in. If you have to pound the seal in, the bushing isn't fully seated.
And don't forget the little cap that goes in the end of the fork.