1st Gen FTW - It's AutoMedic!
Join Date: Jun 2008
Location: Garrison, ND
The paper spacer is there to give you the proper depth. You take a new sensor with the paper spacer installed, put it into the hole, and hold down gently with your hand while you tighten the bolt. Then, when the engine is running, the paper spacer is ripped off and the sensor stays at the right depth.
I've re-used sensors with out the spacer - I just install it till it bottoms, and pull back out about what I feel the thickness of some construction paper is, and tighten the bolt.