First of all, turbo and N/A oil filters are NOT the same. Here is a photo of the back of N/A filter box bought from Toyota:
Norice that the fitment says "S - Series (exc. 3S-GTE)" ie. excluding 3S-GTE - NOT a turbo.
Further, they are different sizes as shown here :
If you have been supplied the shorter filter for a turbo you have been given the wrong one :-(
The parts guy at Toyota I deal with is pretty sharp about knowing his stuff and I've bought from 2 different sources to makle sure. There is more than one part number for each type of filter - see here for cross reference:
http://www.flashmetal.com/index.asp?fun ... T&catid=40
To me that highlights the value of sourcing from Toyota as opposed to motor couldnt care less factors LOL!
Anyway, back to Paul's question: First of all thanks for improved diagram LOL! As mentioned (and also in your diagram) dirty oil travels up the outside of the filter and passes through the filter element into the central chamber so the only selant needed is to seal the inner chamber from the outer. At the bottom this is done with a rubber seal (half of which shown in original photos). At the top that see-through glue bit seals the central chamber to the by-pass valve. Thats all the sealing you need. Oil doesnt bypass the filter by going down the center of a wing as per the diagram because in reality theres no hole as per your diagram as the fold is very tight. Also the glue seal covers the inner chamber end. If yout still unsure PM me your address and I'll post a piece :-)