Hi, The gasket you describe is pretty standard it is placed between the tub and overflow pipe with the tappered side up. If the overflow doesn't leak when you run water into it then let sleeping dogs lay and rest easy if it leaks then change the gasket. Good Luck Woodbutcher

In order to keep it, sounds like you would have to remove the plug, drill a larger hole, thread it, and then use a matching screw. If you know a mechanic, that person would probably have the tools to visit and do it. (this is the kind of task shown on "American Chopper", etc.)

Hi, thanks for your response. I'm not exactly sure what you are recommending. When the diverter is in the up position, there is some seepage from the spout so I guess I'm ok there. I have waited several minutes and the spout pin never drops. Like I said, I hear a squealing type noise which eventually goes away but the pin never drops. On your second idea, please explain what you mean by loosening the spout. Do you mean loosening the Alen nut at the back of it? If i do that the spout will not be secure and start to to move a bit. Need a little more clarification of possible. Thanks.

Thank you Bruce. Unfortunately, I do not have a claw foot tub, mine goes to the floor and as I said, the edge where the tub meets the tile was sealed with a bead of silicone. So I can't look underneath. When I look at the pictures and diagram in the link I posted above, the red area is wider than the pipes, and this is where (in the drawing but not the photos) it looks like holes around the interior that We assumed were weep holes. The red area seems like it would catch any water that might leak if the leak was around the flange,Yes, this unit was installed into the subfloor floor from above, after the pipes were laid between the joists. So, we did not have to get access through the ceiling below which is what these drain connectors are designed to allow. We cannot see the water swirling as it leaks. These modern popup drains have large covers that prevent us from seeing anything. Even the flange is fully covered by the cover. One reason why we don't think it is the popup not sealing is that we have pushed hard on the popup when it is closed, and we still hear water draining. We also tried a white rubber drain plug instead of the popup and pushed hard on it too and still hear the water draining.