If you do use a cut-off tool, make sure it has a neutral lead.
They make grooving tools with specific sizes for O-ring grooves.
If you just need one groove, and you have a cut off tool with out a neutral lead, you can cut the groove to depth, then turn the tool upside down, spin the lathe backwards and use it to bring the other side of the groove down even.
A crowned bottom on an o-ring groove is ok, a canted bottom is a bad thing, it will collapse and then break the o-ring.