Hi Blocky
Yes the large spacer is a tight fit but is also needs to be held by a stud screwed into the boss for the chain guard fixing. This stud can also then act as chain guard mount with a nut on the stud.
Make sure you grease the spacer and long through stud before assembly to prevent rust. Tighten the long through stud with the suspension in mid travel to reduce stress on the rubber when in use.
Stick