blackwater waste valve seal question

My blackwater valve is leaking around the shaft. Replacing it seems relatively straightforward but I've never done this before and have a question about the valve seals.

The seals have an inner lip, does that inner lip face inwards toward the valve (which is how it was packaged):





Or does it face outwards toward the pipe:



It will probably be obvious when I take off the old one and I see how the existing seals are oriented, but I'd like to find out before I take out the old one in case the seals fall off or are different.

This is probably a related question, but when the valve is closed, there's a small gap along the edges of the blade that would let water through -- are the seals supposed to press against the blade seal it? (I guess that would answer my question about orientation if this is the case, since that inner seal lip would face toward the valve). At first I thought it was a manufacturing defect, but I ordered 2 valves and they are the same, and I've seen some product pictures online that have that same gap.



I figured there'd be some diagram or something in the instructions, but the entire set of instructions that came with the valve is:


* Remove old valve and seals
* Place new seals over the lip of existing flanged fittings
* insert new valve being careful not to dislodge seals
* Tighten nuts and bolts provided



And finally, I have one last question, is there any value in coating the seals and/or blade with vaseline or silicone grease? I've seen both recommended in various places online, but the valve instructions don't say anything about it.