The way you have it is correct. There's a little notch on one side -- you thread the plug into the side with the notch. It's kinda idiot proof, actually. Hard to tell from the pic, but the way these washers are designed, it 'naturally' goes on one way. I'm curious though -- why didn't you use the washer that came with the plug? The KICS washers ship with its own crush washer.
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"There are no small accidents on this circuit." -- Ayrton Senna
316.8whp & 248 ft/lbs (Dyno Dynamics) | 319whp & 256 ft/lbs (DynoJet) (04/23/10)
Stillen G3 CAI, CBE, Pulley / F.I. LTH / GTSpec Ladder Brace / Setrab Oil Cooler / UpRev-tuned by Forged Perf.
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