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Can anyone tell me if this is the correct way to assemble Bilsteins? (minus the springs of course)
The large washer to the left in your photo looks upside down (it should be convex up). The bump stop is correct (conical down). If there are grooved lines cut into the plastic washer that goes below the bump stop, the grooved side faces down. Grease the rubber on both sides of #3 below with a rubber-compatible (non-petroleum) grease. There are some bushing lubricants or synthetic greases, like SuperLube, that are good for this use.