Is there suppose to be a groove in the water pump drive shaft where the seal from the chain case cover rides?

 

No there isn't. Was yours leaking oil?

 

you can pull the shaft out and flip it around its the same on both ends and the seal wont be on the groove

 

^ That ain't gonna do anything. The seal rides on the splined stubby shaft that's sticking out of the timing cover, not on the external connecting shaft.

 

ohh ya your right

 

I cant recall its been a while since the engine was in the car. I just want to make sure there isnt suppose to be so i can fix it.

 

there will be a slight grove. you can get a new drive gear. i did. part number 10128338 kind of spendy GM Parts Direct: Your direct source for Genuine GM Parts

 

Something I didn't pay attention to when I changed my seal (didn't have a wear groove to compare to), the new style replacement seal is different from the factory style. The lip on the new might be riding in a different spot than the old one was.
See if this helps you, for placement reference: https://camaroforums.com/forum/lt1-l...als-94z-43601/