Ok everybody, HERE IT COMES. These are the two most important things in any forum: pictures and answers, but first I must elaborate. APPARENTLY I remember things that never happened. Not the fuel leak, that was real... I think...
However, it would seem that I didn't buy a verified Yamaha part, but the cheapo Chinese knock-off. This explains why my 5/16" line never fit right on the petcock, and why I had to switch to 1/4". When I did this I also did a flow test, and it passed well. Often times in the "OFF" position to remove the carburetor, there would still be a very slow, creeping drip. I suppose this (might) explain that too. With all of this in mind - mainly that this is NOT P/N 5LP-24500-01-00 - we shall continue.
This is everything within my petcock. Left to right, you have the main body, seal, faceplate screws, faceplate, wave washer, and valve lever.
Here is the backside of the valve lever. This pathway connects one of the two top holes to the bottom hole OR it can also connect the two top holes to each other in the "OFF" position. This piece is nice and smooth.
This is my seal. What I'm pointing to is a small nick in the sealing surface to the bottom hole going to the fuel outlet. While this won't matter in the "OFF" position, it could certainly cause a leak when "ON."
My main valve body. On the left side in front of the brass stem, there would be "H14" stamped there if it was a Yamaha part. That and the two knobs on the outlet were the signs leading me to realize my mistake. Inside the rotary portion of the body towards the bottom, I found a small bur or poor casting. I suppose it was more like a flake. It was generally flat with the metal, but was able to rise up. It seemed to run front to back as the picture faces. I removed it and smoothed it out before the picture was taken. The rest of the cast also seems rough. I'm not sure if that is a quality unique to the Chinese knock off, or if that will be common.