Gas leaks are not good. They can erode the threads. Are the threads in the drum worn? If so, replace the drum. As far as the how the nipple is seated, I file that area down a little. Not completely flat, but down enough so that the threads of the nipple are not showing. Put the nipple back in, trace around the base of the nipple, remove the nipple and try to round the area as best as you can without cutting into the traced area of the nipple, to hide the flat area.
Brian