Salteen thanks for getting your shop to carry the engines. First the O-ring is in the right spot. If the needle turns easy the o-ring could be bad but the o-ring looks fine in the picture. If you pressure test the carb and there arn't any air bubbles coming out of the HSN then you should be fine, but since you have it out i would also reccomend using a grease like Satoch said.

Rltanner, you will have to send the coupon to me it will not be accepted by any dealers.