Mick - the other big difference with the O-ring v X-ring v W-ring arrangement is *friction*.
As TTC said, the O-ring only has 1 point of contact to hold the internal lubricant. But that 1 piece of contact is 'constant', ie between the outer plate and the inner plate, there is a always 1 big solid squashed piece of rubber O-ring rubbing against both plates.
On my old Z1000, changing from an O-ring 630 H/D chain , to a smaller 530 non O-ring chain, released another few horsepower and reduced sprung weight by almost 1kg
The X-ring chain has 2 much smaller points of contact between the inner and outer plates, and this reduces friction a lot, which in turn allows the chain to act more like a non O-ring jobbie, but with the protection of oil-seals to hold in the internal lubricant.
W-ring are just the next version of an X-ring, with benefits improved again, in the same manner as X-ring over O-ring.
Barra - Its true about the HP gain from a better chain, we aren't talking a hell of a lot, but its definitley noticeable. Its a combination of less friction and less weight that gives you the increase.