The depth setting on the cam seal has to do with how much cam shaft end it needs to seal against and if it needs oil splashing to lubricate. I set my PS cam seal flush - you can use the cam sprocket to set final depth, the DS has a shoulder for the seal, on the distributor mount, to rest against, but in the past I have also set this seal flush - both times no leaks.

It may be better to order seals from dealer - the extra cost may save more hassle the end. I also find it useful to go to seal manufacturer's web site and search the part number, then see if parts supplier's number is the same. I trust Felpro, not sure about anything else.