I'm sure the o rings are there to keep the reverse lockout sleeve from clanking around. There are two slots on the shifter for them. The pin fits through the slot in the shaft as a stop for the reverse lockout.
Cheers

'99 Silver Frost SVT #2602/2760 K&N, Eibachs, 17's, DMD, OBX Shifter (my bad), A6 Sidemarkers, CTA Intake/Pipe Some days you're the bug. Other days you're the windshield