some more info to help clarify, the part of the wave washer that is concave, as in curving out towards the bb shel, its touching against the 2mm bearing shield. The part of the wave washer thats curving out away from the bb shell, its still got a bit of movement in it. But the part that touches the bearing shield doesnt have any movement.
This from the pdf "Tighten-non drive the
fixing bolt to 40 Nm, (30 FtLbs) and check to see if wave washer
is properly preloaded (still has slight wave and not loose). If it is
loose, remove the crankarm and add another shim. Up to 3 shims
can be used. Add shims as needed."
It still has a wave but not sure if there should be any movement at any part of it.