NP203 Square ring to adaptor plate Question

[RPBurris]

I posted this yesterday on the 4x4 forum section. Hoping to get some more input. Basically want to verify the proper location of the square O ring. On the adaptor or in the trans? For the record it was in the trans on disassembly as shown.

So quite a few years ago I ordered the new square ring that goes between the transmission and adaptor plate. Like many things by the time I got around to installing it (after it had been apart for a while) the thing leaked like a submarine with a screen door. That was many years ago. A few less years ago I removed the T-case and attempted to fix the leak again. It was better for a while. So today I finally bit the bullet and pulled the t-case back off since I wanted to do it while I had the hump off and before I finished the interior. Below are some photos. I had a thin layer of orange RTV between the adaptor and transmission and grey RTV between the adaptor and t-case. It was definitely leaking ATF and not the 40 weight oil from the t-case. So before I attempt this one last time I figure I would ask the experts here to get some pointers. I would really like to not leak ATF...Below are some photos from the disassembly today. The first 3 photos are exactly as I removed everything after it was cleaned up. The last photo is more of a question mark on if that is the correct way to install the square ring? Thanks for the help!