my first thought is that looks like a very long filter.. I'm guessing it's a cross reference to a longer filter? are you sure it's the exact specs at the sealing surface? (I run into this at work a few times)
either way, filters are pretty cheap. I'd spin that one off and put a new one on.
unlike everyone else I don't over tighten filters to seal them.. how much you should tighten a filter is on the side of it. depends on the thread pitch how far you turn it after the seal first contacts the sealing surface.
if it leaks after that, something is wrong. toss the filter and try again.
oh, if you want to find the leak first, clean it with brake clean, but you gotta blow it dry with compressed air to it perfectly clean. and then you should be able to start it, lay under and watch for a while, you'll see it get wet.