I am replacing all the gaskets and seals in the bugs engine. In the kit there are what looks to be paper cylinder gaskets/seals. I presume these go between the cylinders and cases?

Also, there is a small peice of tinware under the cylinders that spreads the air under the cylinders. Mine are all bent up. Are these generally used or discarded?

They are very important
As they spread air to the underside of the barrels
Best off trying to straighten them out or get another set

Thanks mate, I should be able to beat them back into shape

Don't use the paper gaskets under the cylinders as it crushes and looses some head tension as it ages. Seal the very clean surfaces with a Hitemp RTV Sealant, also under the lower headstud washers as they are in the tappet covers and always leak otherwise

if you mean the deflector plates are bent on each corner
that's what there suppose to be like that narrows the gap between the place and the cylinder

I used the paper ones but this engine in its current state is only a temporary item. After spending years working on jap bike engines these things are awesome to work on. Will start accumulating parts soon for the "upgrade".

The deflector plate was a little bent up on one side so it has been rectified and fits beautifully now, quite snug against the fins on the barrels.