Your bushing is correctly installed in your picture. The thin washer goes under the clip. Use a small amount of synthetic disc brake grease on both the inside and outside of the bushing, on the end of the shift rod that slides into the bushing and on the contact side of the thin washer. The clip in the picture needs to be slid all the way into the pin hole. It looks like there is sufficient clearance in the picture.
If the shaft on the end of your shift rod is not long enough for the bushing and washer to together with minimal play, you may have the wrong shift rod end for the bushing/thin washer set-up. It would likely be for the non-competition plus/factory shift rod. You will know because the clip won't snap into the hole with both the bushing and washer assembled on the end of the shift rod. I use the thin washers under the clips on the opposite side of the **** rod ends too.
Use eye protection when snapping the clips into the hole. They can go flying. Also, the aftermarket shift rods from Brewer are much stronger/stiffer than the factory pieces. Make sure to use the correct size pin inserted into the shifter to adjust the shift rod lengths.
