I had a similar problem. Issue is the plating and the chamfer at the head-cyl mating surface:
Thread:
http://forums.pelicanparts.com/showthread.php?threadid=273157&highlight=CE+ring
I tossed mine and got some replacements (note: must be same height group). However, there was a fellow on here last month that had a difference in height between outer and inner groove mating surface. He put them on a lathe and cleaned them up. You may be able to do the same. See thread:
http://forums.pelicanparts.com/showthread.php?threadid=333701&highlight=CE+ring
Best regards,
Michael
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 Michael
'82 Euro SC 'Track Rat' 22/29 Hollows, 22/22 Tarrets, Full ERPB F/R, Rennline Tri Brace, Glass bumpers, Pro 2000's, 5 pts, blah blah blah
'13 Cayenne GTS
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