7 lbs with the phallosan is pushing the limits as far as I'm concerned. I looked at your pics and I don't think it's a big deal and should go away if you give it a break for a while. It's very important to make sure to use a wrap with vacuum hanging. Preventing blisters is one thing but it's the meatus that your really need to protect. At a bear minimum you should at least cover your glans with something like a waterproof bandage tape. Part of the conditioning period for vacuum hanging is to condition the meatus for the higher weights and it should be a slow progression over about 8 weeks to reach the weight you are at WITH A PROPER WRAP. Let it heal, buy a good vacuum hanger and make sure to wrap your glans properly.