1.No,"O" ring is not visible, Cap and housing do touch.

2. Tighten hand tight, then tighten about 1/2 to 3/4 of a turn.

Make sure you have the filter seated on the shaft and the "O" ring in the correct groove. Do a search for oil filter, oil change, or oil filter "O" rings in the online service manual.
I don't know where you are located but I'm sure another member lives not to far away that would be glad to help you. A forum member helped me the first time.