The ~25% "squeeze" of the white O-ring is the generally accepted amount by many airhead gurus, most of which are too busy/wise to bother with the ADV rider forum, (except for Anton L) but in any case, that should be the goal for anyone with an airhead to service. Â Â Going to more than 50% or more squeeze is much more likely to result in a slipped or cut O-ring, so while there is some practical upper limit, it is still a rule of thumb. Â Too little compression of the O-ring can result in incomplete sealing, which causes loss of oil pressure which in turn, can be fatal to the engine, so most everyone goes for the middle of the "squish range" that will most likely ensure good tight sealing, generally avoid cutting or slippage of the O-ring, and not require so much torque as to pull threads out of the engine casing when turning the oil cover bolts snug. Â Bob Fleischer (snowbum), Paul Glaves, and many other well published airhead experts all follow/proclaim these practices, and we the faithful learn and follow their lead. Â They know far more about these bikes than most of us will ever know.
What further confuses things is that BMW had (2) somewhat similar, but different designs during the period of /5 models in 1970 through 1995, and, there are some significant "variances" in the tolerance of the dreaded "oil canister" of either design. Â This results in people doing things in various ways for various reasons - only some of which are based in logic. Â The key thing for you to remember is to determine the proper stack up for your particular airhead, and then be consistent with following that method to achieve to proper amount of O-ring sealing. Â In the vast majority of airheads using the canister design of your bike, they need the metal shim, though in at least some cases, it might be possible to do without it. Â With the situation in my bike, I know that if I didn't use the metal shim, I'd likely end up with a slipped/cut O-ring and problems with sealing.