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Try using soap to pinpoint what exactly is leaking. Start at the nut on the line then work back onto the valve. Just let the soap drip down onto the fitting until it's all the way around the fitting. You should see bubbles if it's leaking bad enough that you can smell it. Did you back up the valve with another wrench when you removed the old line? I've never had that type fitting leak if installed correctly.
With the threads almost bottomed out on the metal flare fitting, I'd be amazed if it's actually leaking there unless you've got thread issues on the valve itself.
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Nick
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