WarnElemDistorted in compression of rubber seal

Hello,

I am trying simulate compression in rubber seal. Let me explain my working condtion my parts consists of seal top cover, housing, seal, and bush. Intially seal rests on housing inner seal which 60% rests on housing and remaining on bush. There is height differenece of 0.07 mm between the housing and bush please refer to attached pics. When the top cover compress the seal the height differenece between the hosuing and bush should be observed in seal. 

My Error:

I am Facing error WarnElemDistorted. Rubber material data is attached.

please refer to pics attached

Thanks