PM research M8
Hi RonH
Just had a look at it and the steam exits out of the crankcase, normally expelled steam is used to provide a draught through the boiler. However if you are going to put this in a model you would need to consider condensate.
As for the seal it's more than likely a silicone O Ring or rolled teflon ( which makes it easy to replace). Mechanical packing something that small with gland packing is a painful task.
Only old in years not mind or soul.