Coat the inner rim of the by-pass valve with gasket sealant and put the new flat gasket in place on the rim.
If you’re going to reuse your original by-pass valve, clean it thoroughly with solvent. You can discard the old gasket and bolts, since they won’t be used for the conversion
Here’s the by-pass valve with the conversion adapter under it and two 2”x1/4” mounting bolts in place. The new PF-25 filter is ready to spin-on as soon as the assembly is bolted in place, which is the next step.
It’s also a good idea to replace the stock oil pan drain plug with a magnetic unit. For about $5.00, a magnetic drain plug is a great piece of added insurance against damage from minute metal particles that may be suspended in your oil.