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I rebuilt the Carter YFA off an '86 Bronco, and it came with a little mushroom cap shaped Welch cap that needs to be punched in. I've never fiddled with one of those things. Does it go in the hole with the rounded convex side facing out or the bowl-shaped concave side facing out?
It could be either way. There are caps with a shallow curve and no flange around the edge that are intended to be installed against a counter bore at the bottom of the hole. The concave side is toward the outside and a "gentle" seating tap with a blunt punch flattens the curvature slightly causing the outer diameter to increase, sealing the perimeter. The hole for these is usually very little deeper than the thickness of the plug.
Another kind of plug has a cylindrical flange and is usually installed with the cup shape outward. These should be installed with a driver that seats only on the flange edges. You can install them by doing a lot of taps, going around and around the perimeter, being careful not to tilt off axis. The seal is on the whole cylindrical surface.
A little sealer on either of these is a good idea. (Your description sounds like the first type described.)
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