kerklein2, this might be a shot in the dark, but I would suspect the leak is being caused by compressing the cooler walls together. Bobby recommends installing a plastic ring to "support" the thin plastic walls of a cooler when installing a bulkhead to create an MLT; I wouldn't be surprised if this was a similar issue. I would consider cutting the opening larger on the outside of the cooler, and fabricating a wooden or plastic "support block" with the appropriately sized hole drilled in it, and bonding it to the inside plastic wall of the cooler. This would prevent the walls flexing when tightening the element's nut. All you should need at that point is a single gasket on the inside of the cooler.