You can also make small adjustments to the hinge and latch on the smuggler to make it seal tighter. On the one I had you had apply a very small amount of pressure to engage the latch - never had a water issue.
Well, I guess enough comments have been made regarding leaks-per-dollar spent and I generally agree with them.
But it's about time someone said -- nice job FJRocket. I think that's a good homemade solution that gives you a custom seal. I don't think I'd worry about what the inside of the lid looks like unless you're planning to show the thing off at a concours d'elagance. I mean, the only time it's open is when you're taking stuff out or putting it in.
A smuggler isn't on my farkle list, but I'd still like to hear, somewhere down the road, how this solution worked long term.