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I just took it apart - the o-ring seems fine, but the plastic piece that the siphon tube goes into is perished to the point of crumbling away.
I'll see if replacing that helps, but in the meantime, PTFE tape is cheap and plentiful.
I've considered making a paper / cork gasket bodge that covers whole surface. For £4, might be worth a look.
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On the plus side, at least with these machines you can be sure you can find each and every one of those parts for sale! I really need to service mine, there's nothing wrong with it at the moment but I'm sure they should probably be serviced more than once every 3-4 years with daily use!
Still, they're pretty resilient things, I'm sure mine will outlast me at least.
Sometimes have a hiss of steam, but that's only when I've dosed too much/too fine and I'm putting a load of (too much) pressure through it.
When was the last time you replaced the gasket there? I think I've changed that one (I've definitely done the one in the grouphead so assuming I changed the one between the group and boiler), but that was maybe 2-3 years ago.