I am trying to figure out how to stop a bad oil leak from my oil filter cannister on a 1995 E320.

I can plainly see the oil leaking out from the seal where the top of the filter cylinder case meets the black plastic top. I have seen this before when I forget to remove the old o-ring seal but I do not know how I am getting such a big leak now.

http://home.earthlink.net/~sasjzl/mercedesheadgasketreplacementjourney/

I want to confirm that I am putting the seal on correctly. If you look at photo #1 at the above site you see the upside down filter case top and the seal is right up against the top of top lip. I am unsure whether that is the correct place or if it is supposed to be 'down' (when putting the top on normally) in the space shown at the very top of the last thread but not right up against the lip (as in photo #2). Sorry the pictures are not clearer.

Also you will see an imperfection in the metal bottom part of the oil filter can in picutures #3 and #4. This was from some reckless manifold bolt removal attempts. Could that be the cause of the leak?

Thanks very much,
Jim Lee
1995 E320 Wagon