I had the same problem at first and now the o-ring is getting a bit easier to work with. I figured out a pretty easy way to remove it using a small zip-tie. Use the pointy end of the zip tie (tie wrap to some people) and slip it under the o-ring, sort of lenthwise, somewhere in the middle of one of the long sides. Then after you get under it, gently grasp the o-ring and remove it. I always keep a toothbrush handy and go over the entire groove and the other mating surface. A tiny amount of silicone grease to shine up the o-ring and then put it back in place. Watch the spot near the hinge where the short steel pin is, you need to work that in gently too. Close her up and then give a visual all the way around looking for any hairs, sand grains, etc. Oh yeah, I always push each button on the back before inserting the camera too, just to keep everything free and loosened up before going in the water. So far so good. I use the camera system almost everyday.
Good luck!