I guess i was just looking to see what other people thought. I guess the screwdriver induced failure of the oring has it.
FWIW, I have done the spline lube probably a half dozen times, and every time that o-ring has been blown just like yours. I never used a screwdriver, either. The last three times, I lubed it up real good before putting it on, and specifically checked very carefully to see if the o-ring was damaged in any way after slipping it over the splines, but it looked perfect. I was thinking maybe I put TOO MUCH moly in there and the pressure caused the o-ring to fail, or something like that. I was going to try putting a little less in there the next time.