Like i said, it could be a soft or bad oring under the yoke/din. Not talking about the external oring.Thanks for taking an interest. The nick is not the source of the problem as you say. The leak is not right at the seat. There is a leak (bubbles) coming from under the yoke distance piece and also between the turret and the main body of the 1st stage, so I suspect something is going on inside -- bad o-ring in the yoke nut and/or turret maybe? (As others have suggested.)
Anyway, I am just trying to decide whether I am actually curious enough to spend the money on the tools to try and work on this myself, or just send it off for a rebuild. It would be substantially cheaper to just send it off. On the other hand, at this point, I am starting to think someday I am going to have to do this myself. (Maybe I'll take the HOG course at some point.)
You will need a few basic tools. It is tough to open a regulator with out a vice for example.