Picture one is the 6.5" valve stem that goes into the house, with the piece to the left being the holder for the rubber gasket that stops the water (deep inside the wall so the faucet won't freeze in the winter) when the handle on the outside is turned... the gasket assembly is 'free floating' inside the hollow valve stem, with the shape of the rubber flange designed so water will go past the sloping rubber when the valve is turned to open... the rubber flange is there to keep the valve stem centered inside the hollow faucet assembly
Picture two shows the 'larger' O ring that goes inside the valve end cap to keep water from flowing out when the valve is open... barely visible inside the gasket assembly is a 'small' O ring that is supposed to stop water from flowing through the hollow valve stem when the valve is open and the water pressure pushes the gasket assembly into the hollow valve stem
When our outdoor faucet leaked when the valve was open I first replaced the O ring that goes inside the end cap... still leaking... then I replaced the tiny O ring inside the gasket assembly... still leaking
I finally went to a plumbing supply and bought a new valve stem... leak fixed... when I looked in the end of the old valve stem I realized that our 'hard' water had caused pitting where the tiny O ring was pressed into the socket, so a good seal wasn't being made
If you have an outdoor faucet and water comes out of the faucet assembly when you have the water on you MAY have the same problem of an O ring not closing off the flow
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