cv axles

Changing out my passenger CV axle and saw what looks to be my gearbox's oil seal sticking out. It's a green mettle protrusion w a lip that is sticking out about an 1/8 in from the housing. I would imagine this should be flush. Pried on it a bit to see if it moves and it doesn't. Parts break...

I'm trying to replace the cv axles on my 97 jetta gl, but I'm having trouble taking out the bolts on the inner joint. Has anybody had a similar problem? I don't know what kind of bit to use on them, I tried hex bits and star bits but none of them work! It's breaking my head any advice? Anyone?