If you have the valve in the Filter position and it is still leaking water out the backwash line, the problem is the Spider gasket inside the valve itself. However, the valve that usually comes with the Sand Dollar filters has the gasket glued to the Diverter, and has to be replaced as one piece, sorry about that!
If you have a manual on the filter, go to the parts page dealing with the valve. If you do not have a manual, the link below will take you to one online:
http://www.pentairpool.com/pdfs/SandDollarOM.pdf
The part that needs replaced in Item #8. What you will do when you get the replacement part is to stop your system, close any valves to stop the flow of water so you do not loose too much. Then you will open up the Air Release Valve and release all the pressure in the filter. Pentair usually recommends that you wait at least 30 minutes after this to make sure there is no presure in the tank. Once this is done, you will remove the screws holding the top part of the valve to the bottom, place the screws is a safe place so yo do not lose them - did that once!- and pull the handle portion up, as a single piece.
Place the top part on a flat surface, and remove the Handle Screw (Item #3) while holding down on the top of the valve. This will help keep the spring in the handle from popping up on you! Slowly raise your hand to allow the spring to expand, no parts will go flying this way! (did that one too!) Then just pull out the old Diverter and replace it with the new one. Reassembly is a bit difficult because of that spring, but once the Handle Screw is in place, it is pretty easy. You DO NOT need to lube the gasket/diverter, so you just line up the diverter sections with those in the bottom of the valve and replace the screws. Just in case, the WASTE position is always OVER the Waste Port on the valve.