Hi Dark, that washer is what seals the bottom of the oil filter. There should also be a spring in the bottom of the oil filter housing that the washer sits on top of. So it is assembled in this order... bolt, thick steel washer, rubber seal, oil filter housing, inside spring, that washer, oil filter cartridge, then square section o ring seal fits into the alloy housing without being twisted, then lube the o ring and the top of the oil filter housing with a bit of clean oil, screw the assembled oil filter housing into the alloy housing ensuring the top is seated into the o ring and tighten up but dont overtighten or you will break it or damage the o ring seal. Fill enging with 20 w 50 oil and start and check for leaks. If it leaks then loosen it a bit and give it a slight twist and retighten. If it leaks a lot youve done something wrong.
Hope this helps.
Cheers Rod
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