You have a couple of options:
Cat still has the large ferrules that silver solder to the ends of the line or change to fittings that use the later style compression fittings. The Cat fittings maintain full 1/4 in. bore diameter, the later compression fittings do not.
As far as the valve goes, there is no "O" rings. They are a double seat valve that seats all the way open or all the way closed. In between you depend on a valve stem packing in the valve stem nut.
The bad news is that Cat has had a run of leakers on new valves. They don't seat right and the packings leak also.
Is there any reason for the fuel line for the pony engine to run over and then back up to the carb? Mine has a fuel shut off at the tank and then another over at the pony clutch side,can I go straight from the sediment bowl to the carb and eliminate all that piping?
Thanks
Don Alves
Seems like you have a mix of old and newer model parts. Only need shut off in one location or the other. The one at the pony side was a convenience thing and the valve block had the fuel filter element in it. No reason you can't go a more direct route so long as you have a filter.