A good seal has .040 or less clearance between the ring and impeller. If you have .080, I would live with it for another season, unless you just aren't hooking up at all. 
Like I said, my xp was still fun at .220 gap, it just took a little spinning to take off. I was still jumping waves at the beach and doing submarines and spinning out on flat water. 
I would never let it get that worn again. It was like that when I first got it, and I didn't know what I was missing until I swapped it out.:reddevil: