RE: Installing Engine
my initial "uneduated" thought is the washer belongs there.
must be something else wrong.
are the clutch show springs seated in the groove in the crank bolt?
anytime there is a bearing there is always a washer(spacer) backing it up.
I was just at a friends house and had him looking at my OS max engine, I was talking to his wife and not looking but he put the clutch-flywheel etc all togeather in 45 seconds.
last time I did it it took me 10 minutes just to find my reading glasses.LOL!