The left side wasn't as oily. The small nut on the arm/rod was really loose like about to fall off (see photo) so I tightened this up (just as tight as I could get with my fingers from fear of breaking it. Apart from that all seems connected.
Never played with powervalves so please let me know if im missing anything.
At this stage im thinking of just putting it all back together tomorrow with the new orings and see how it goes, hopefully it doesn't blow them out again.
If you are talking about the nut in first photo of your last pair of photos, it very well could be the problem. If the travel of the arm that nut holds tight is limited the PV won't open all the way.
Like you say, put it together and try it.
PS here is how to check the adjustment. The pictures that used to accompany this post have expired but I think you will get the idea.:
The PWK 38 did seem to help on my '07 WR 250 as well. The bike did seem smoother with less violent hit. As far as adjusting the power valve height, here is some information that came from either a member here or TT. I am sorry I do not remember who to give credit to. Hope this helps. If adjusting this be extra careful that the power valves are not so close as to rub the piston skirt.
1. Remove seat, gas tank, right side cover, silencer and pipe
2. Remove radiator cap and drain coolant
3. Remove upper motor mount and spark plug
4. Disconnect coolant hoses from head
5. Remove head and right PV cover
6. Move piston to bottom of stroke
7. Measure from bottom of PV to top of cylinder. See photos
8. You will need to improvise an accurate method of measuring. I made a small L-shaped plastic ruler with two marks for the settings I use. The short leg of the L needs to be just long enough to grab the edge of the PV. See photo
9. Make sure PV adjustment arm is bottomed against case when measuring. See photo.
10. Loosen bolts and adjust PV height.
I use 48.0mm for MX. It gives great top end power at the expense of bottom and mid.
I use 50.5mm for woods riding. Good grunt, but not as much peak power or revs.