So i was inspecting the parts that Keg King tells me is causing the leak. It turns out that I have two different stiffnesses. I have two soft and one stiff. I believe the stiff washer was on the one faucet that wasn't leaking as when reassembled the lever action was about the same.
I think the soft washer can't clamp down hard enough to help create the seal. The design is still flawed overall, but this is seeming to work. I cannot find a similar washer online so I am trying to get Keg King to send me a handful.
I ordered the faucets from Ontario Beer Kegs and they have offered to send me a return label and refund my money. I'd rather the faucets work, but I might take them up on it and maybe have them trade me straight up for some perlick 650's