felt clutch washer

[TargaT]

Hi, it looks like this has been discussed several times but I'm still not clear on what the right answer is. Right now my pilot bearing in the flywheel is flush at both ends. It appears the felt washer should sit in about a 3 mm recess. To accomodate this the pilot bearing would stick out the same amount. Is this Ok as it will extend into the crankcase but it appears the opening is large enough.

thanks, Joe