Here are the followup photos for the sprayhead problem. I don't know where these pieces of seal came from, since I have not used these kinds of seals in this part of the water system.
Photo 1 http://s1274.photobucket.com/user/gpascazio/media/Samsung%20Photos/5e208843-ecf4-455f-b823-6b2abba81d27_zps51053a97.jpg.html?sort=3&o=0
Photo 2
http://s1274.photobucket.com/user/gpascazio/media/Samsung%20Photos/20140708_072916_zpsb876cd2d.jpg.html?sort=3&o=1
Photo 3
http://s1274.photobucket.com/user/gpascazio/media/Samsung%20Photos/20140708_072859_zpsbb76ac4b.jpg.html?sort=3&o=2
Hope this can help diagnose their problem.
Showerhead has been working great since the repair. As a matter of fact this is the best this sprayhead has worked since we purchased it.
I have a theory that it came that way from the factory.