I went through this a couple of years ago. One of the biggest pains in the ass that I've ever had to deal with.
The metal bushing fits into the end of the manifold lines, and should butt up against the port in the end of the compressor. (BTW... The small line is the high pressure/discharge port. It's the one with the muffler. The large line is the low pressure/suction port.)
The first time I did this, I also couldn't figure out where the bushing went, so I just left it out. The result was that the rubber seal was pulled partially out of the sealing washer, and tried to get sucked into the line.
My bushing was a force fit in the end of the line, and I still don't think I got it in, far enough. It should fit so that there is no gap around the perimeter.
Edit - I think I used the green washer with the small bushing; and the "natural" washer.
[This message has been edited by Raydar (edited 08-05-2018).]