Start with:
Grease is completely unnecessary. Once you have everything buttoned up, raise the passenger's side if the axle up 3-6" to flood the driver's bearing with oil, repeat for other side. Then should be good for another 100k miles.
There is a chamfer on the edge of the housing on the axle - that is what you are seeing in the mirror. I looks to be butted up.
I have never seen o-ring at the axle c-clips before. Personally, I would be tempted to remove and discard (seems like some one didn't know what they were doing previously, but other may correct me here). There is supposed to be some play, so when you are cornering hard at the "Wall of Champions" chicane (It's Montreal FP weekend), you don't get binding under the g forces.
OK, you have rear cylinder issues....
If you don't have pins between the piston of the brake cylinder and the brake shoes, and as the pistons didn't eject themselves the 1st time you tried to stop, they are seized in the bores. They need to be replaced.
As the pins aren't considered a wear item, you might have to find them at a salvage yard.
If you had the brakes inspected and the didn't notice the missing pins, I'd be looking for a different service center.