The hardened thin wall sleeve is called a "speedie sleeve" and is a standard off the shelf part (no special commissioning required). They are available to suit every standard oil seal (usually in a variety of lengths to suit varying installations).
All these seals and sleeves are generic components freely available from any competent bearing supplier.
The wear on the shaft is normal (ie it will happen to every shaft with a lip seal over time). Don't be too hard on the "old leather" seals - my experience is that they are slightly better on old shafts (more conformable, absorb a bit of oil and take up slight wear better) The modern plastic/synthetic rubber ones are harder, less conformable and need a better shaft surface to seal properly.
Using an undersized seal is not good practice (it will make the problem worse as it will deepen the wear groove formed by the seal - which at this stage is usually below the hardened surface originally provided) - it is a "bodge" to get you put of trouble - it is easier to fit an undersized seal than to do the job properly (seal can be done with the diff in the car, the speedie sleeve usually requires diff removal) which is frequently why it is done.
The 406 Diff is a Salisbury 2HA type which are quite (very) common - SKF actually do off the shelf kits for them. Sorry I don't have the modern part numbers to hand (the original Salisbury part number for the seal is 2HA-019), but any diff specialist that does work on Jags (or MGBs) is likely to have the parts on the shelf.
Regards
Julian
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