If you trim the gasket that is slightly over the channel and hole it should work properly. If you don't like it just buy some gasket paper and make your own, would be cheaper in the long runDo I cut the gasket ? As it looks like there will be some oil restricted, trapped in the old bolt hole ?
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When I did my install,only a smaal bit was trimed off the smaller gasket center hole. Yes, it does do away with the bypass spring, but the pressure is so low on these machine's anyway, I have had NO problem's with oil.
I went with this mod for the paper filter. Figured it is better than the screen.
No, the block goe's in after that small gasket, then the filter, then the cover. You don't have to tighten the center bolt too much, cause you will pull the thread's out of the aluminium case.