You don't need the white teflon tape honestly. If the O-Ring is sitting in the position correctly and greased, there should not be any leaks at the seam. Did you replace the O-Ring correctly?
Don't fit the canister head back wrongly. There is a hole that leads to the input part of the head, which leads to the bottom of the canister. If you fit it the wrong way the water will pass through the fine pad first, which is wrong. Check the 2 small O-Rings at the input and output heads and also n the attachment that fits there. The red piece that goes over the little flow rate indicator ball should be fine.
See this side diagram to get a better idea:
Key parts to take note of are as follows:
#74444190 (2 o-rings for the input/output attachment) - sealing rings for double tap
#7343150 (main o-ring for the canister head) - sealing gasket
#7343390 (2 rubber joints for the white filter trays) - rubber seals
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