Proportioning valve leaking

I have a 69, XR7 with a 351W and a fender mounted proportioning valve that leaks out of the weep hole. I removed it, polished it inside and out with a brass brush. Cleaned the spool with steel wool and installed a rebuild kit. I was real carefull not to nick the O rings when reinstalling the spool. Reinstalled valve and stepped on the brake and a strean of fluid shot out of the weep hole. Did I miss something or do I just need to replace the whole value?

The o-ring at the top has slid upward. You have to take a toothpick (cut pointed end off) and push the o-ring back down on top of the sleeve.

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I will pull the valve back off and give that a look see.
Thanks
Roger