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I need info on the correct position of the fuel sender O ring. The schematic shows it between the sender and lock ring. Some posts discussed ways to keep it from slipping when tightening the lock ring but I also read a post saying the ring goes between the tank and fuel sender, then the lock ring.

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https://www.classiczcars.com/forums/topic/41670-fuel-sender-o-ring-placement/
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I believe the o ring goes between the tank and the sender. The tank is 'grooved' for the o ring. I've replaced a few and had no issues with keeping the o ring in place when putting the sender unit back in.

I recently replaced mine, this is correct.

The O-ring is petrolium resistant, so use a heavy petro based grease to hold the Oring in place and prevent tearing it if the sender moves durring lock ring installation.

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