Clean the orifice and the oil passages and then blow with compressed air.
For the oil orifice you can use 4x2, that is the stock size for that k2, but 6x2 will work which is what gets thrown in a lot of the time because that is what the gasket packs have often times. The 4x2 fits best for the undrilled ones as they are a bit smaller
I used nitrile o-rings from harbor freight there, sized at a true 5x2, not slightly under and works just fine there. Use permatex non hardening under the pucks. My best application method was to put it on the lip where the puck lives. This way most of the extra goo squishes down to atmosphere and not in to the head. Clean what squeezes out because it will raise the towers ever so slightly accelerating wear there because of misalignment.
You need two of the "medium" sized o-rings, can't remember the size off hand, under the cylinders. Then two more at the head to cylinders, that is all the k2 used. You only have 2 bc that kit is more geared towards the later model with the tube seal thingies
You have the right idea and locations for the o-rings. Over thanksgiving break I rebuilt my own k2 so all this stuff is pretty fresh. You can pm me if you need anything