Donut Gasket at Catalytic Converter Midpipe connection

Hopefully this is my last exhaust question thread...

I ordered a replacement cat assembly a, replacement midpipe with resonator, and the gasket for this connection (I believe referred to as the "donut gasket"), as well as the spring bolt kit. All are aftermarket but OEM style, manufactured by Walker. Part numbers are 54573 for the cats, 55231 for the midpipe, 31697 for the gasket, and 35412 for the bolts, all seen in this diagram here.


I'm having a hard time putting it all together. I'm not certain about the orientation of the gasket, though one way seems more correct than the other.

Here is what the end of the cat looks like: Click Here
Here is what the front of the resonator pipe looks like: Click Here
Here is the gasket: Click Here
Here it is all together, but it doesn't look like its fitting right: Click Here

Note how there is a little bit of pipe extending out of the cat assembly. Is the gasket supposed to fit mostly/completely over this bit? Because it doesn't; there is a little indentation in the gasket that aligns with the pipe, but doesn't fit over it (I think you can see this indentation in the picture of the gasket above).

Thoughts? Do I just need to smash it all together? Will it compress as I use the spring bolts?

Thanks