Hey man, I have been digging and digging looking for the drawing I made of specifically where I turned the grooves (i did 2). All ive been able to find are the drawings of the depths of features: case > factory o-ring & case > case splits.
The bike is put away for the winter. its hard to say if/when id have time to uncover the bike, pull the fairing, slave and the rod to get exact numbers. If you want, I can look at my depth drawings and give you an approximate (but not exact) position for both grooves that should rest in a place where they wont encounter the case split during normal operation and should solve your issue.
Unfortunately, I don't remember what size o-rings i used. I know they were quite hard, probably durometer 70. I had a hell of a time getting them onto the shaft. And they weren't too keen on going in the hole. It shouldnt be hard to figure what size you need when you consider the diameter of the hole, though.
Groove depth is going to be tricky. I did quite a bit of research into this issue and some of the scattered threads of guys doing this. You need to be sure you aren't so shallow that the o-ring is too big around to go in, but also you can't be so deep that the rod strength is compromised. Apparently some guys turned too deep and the rod bent when pressure was applied.
This isn't a dremel job. If you don't have a solid lathe with good fixturing, you should probably have a job-shop do the machine work for you. I will say i was surprised at how hard the rod was and with it being not very thick, it was prone to deflection.
let me know if my best guess for location is good enough for you and ill get on working up a drawing for you.