I can't really tell from the pics. If the ring fits down in the groove all the way around the shaft, then I would say it is too small. The one I have, probably sticks out about an 1/8" on one side, when the other side of the ring is pushed down into the ring groove. If I remember, I'll measure one of the rings and post up its diameter. Was the new ring and the old ring the same diameter and stiffness, when you squeezed it?
IIRC, the space between the green part of the CV shaft and the diff. housing should be about 1/8" (just big enough to get a flat blade screwdriver in, to pop the shaft out).