On the 80 Special petcock I just had apart there is also a seal (not an o-ring) on the perimeter of the tap, the part with the handle, I removed it, lubed it with silicone and reassembled everything. Don't know how it worked though because someone bought the bike before I could put gas in it.
No more seal on mine. Was yours mounted on the front side of the wave washer? And the strange thing is that it was okej before. The only leak was down the tube. I thought the wave washer served both as a seal and to make the tap movement a bit harder, staying in posittion.
M