Is the red ring that ends up low on the forks supposed to be integrated into the upper fork? Has anyone found any schematics for the front forks? If it is supposed to be integrated in has anyone reintegrated it?
If you mean the red rubber ring that's visible in this photo... That's the suspension travel indicator which shows you how deep the fork dives in.
So it's supposed to be there, not integrated anywhere.
Just roll the o-rings (or one of them) up to the top of the fork body. Ride for a few days and notice how far down it goes and/or if it bottoms out, tighten your forks up a few clicks. If it is 3 inches from the bottom after a week, maybe loosen up a few clicks until you get to about 1 inch from the bottom after normal riding... That's what I do anyways, might be wrong on all of it but I'm pretty sure they are just an indicator as to how much travel your forks have gone down.