The two spacers go in the middle of the single cross pin that goes into the output gears, which keeps the gears meshed fully, and also helps add a little pressure on the orings as you mentioned. You got them in the right spot.
Holy shit bro thank you so much for this video me and my buddy were wondering where these two little washers go I got everything else put together but I'm like damn I wonder if somebody makes a video?? So thanks a lot 👍👍💯
I saw in another video the guy gave the large O-rings some very gentle stretches to flatten them with out. I don't think I could have seated them properly without that. Also I didn't tighten the screws down as hard as this guy did. And I used blue threadlock. Also I lubed the o-rings before assembly because I put the lower and gear section together, added oil and then tried to hold the whole thing by the ring gear and of course it dropped and fell apart. But i haven't noticed any leaks now that it's together