I've been having problems with my passenger side axel lately (b16a crx), it started after i took them apart to replace the cv boots. Basically a clicking grinding noise. I took the axel back out last night to inspect it. Took apart the tripod passenger inner side, put it back together again, it now only really grinds when i push the axel all the way together.

But...there's a o-ring as i would call it at the end of the spindle on the end of the inner hub, and it's actually pretty loose. there's a groove on the spindle it's inside, just like the o-ring that holds the tripod in place. But this ones loose, it's been perphaps bent out of shape. My feelings where that maybe this wasn't allowing the axel to go all the way into the tranny properly and hence causing the clicking/grinding noise.

After inspecting the axel and putting it back in, the noise has been reduced to a minimum, but i suspect it will grow in the next few weeks, as it did the first time this happened...

My questions would be.
Is that o-ring absolutely necessary? Could I just disguard it?
There is no apparent wear on the axel...what would you suggest?