It can be fixed. Here is a copy of a post from Carlo at CC Racing.
"Guys,
I will try to explain thru pictures what needs to be done to fix the problem.
**Note**
If you have the some of the first pipes and it has the three piece manifold you will need to measure with the shim in place.
Part One:
In the first picture you have the part of the exhaust manifold that bolts to the engine. The ring that sticks up off of the manifold that holds the o-ring in place is too tall and must be made to only be .080 tall. It was made too tall from the manufacturer and will hit the flange on the header once compressed between the two manifold parts and will cause a leak. The second picture shows the manifold after being machined, it will only need to be deburred and it is finished.
Bolt your two halves together with some new o-rings and see if there is a nice amount of friction when you try to swivel the header around in the manifold. If it seems hard to move then blow thru one of the water fittings and hold your finger over the other fitting and it should hold pressure, if it does then you can skip part two. If not and it is leaking air when you blow thru the fitting follow the directions for part two and you should cure any problems with your manifold.
Part Two:
The third picture shows the outer ring that bolts the header to the exhaust flange on a belt sander in a diagonal position. I work it this way first and then I switch to a horizontal position like shown in picture four. Make sure that you do not apply too much pressure as it will make the flange crooked. You only need to take about .015 off of this part to make the two parts put a nice clamping force on the o-rings to seal against the header.
I have noticed that the outer ring needs to be radiused so that it does not grab the o-ring and stop it from sealing. It was really noticeable after we have belt sanded the outer ring, it is really leaving a sharp edge and wanting to grab the oring and not letting it seal. you can use a deburring tool around the inner hole to make a radius so that the o-ring will go right in, like in picture 5.
Make sure that when you are finished and ready to assemble you use some grease on the o-rings so that the go right in without being pinched.
If you do not have the capability to do this to your parts send them back to me and I will fix your parts at no charge. Again very sorry for the trouble."