Jerry's pic has a speedi sleeve laying on top on the axle, not yet installed. The seal riding on the slightly raised portion of the axle (usually 1.25" on a 1" axle) will get a groove "milled" into it where the seal rides. Sometimes corrosion will cause pits there as well. The speedi sleeve is pressed (or driven) over this area to provide a new sealing surface for the seal to ride on - seal against. They are normally purchased in a a kit with the speedi sleeve and the proper seal to go along with it. Just give the parts guy your old seal number, or mic the axle and give him the measurements, and he can fix you up with the proper kit.
The reason bearing buddies blow rear seals out, and leak grease everywhere out the "weep hole" in front is because someone over filled the bearing buddy. You just want to pump grease in until the inner piston in the bb barely moves outward. Occasional checks to make sure the piston hasn't bottomed out indicating the need for a few pumps of grease, and check the bb to make sure it isn't working loose from the hub are highly recommended. Should really be part of every pre-trip inspection, along with lights, tires (inflation and damage), lug nuts, and all the usual stuff, IMHO. I love 'em!