Those along with a fiber disk make up your oil pressure by pass valve and yes it goes into the place you described. Spring first then the fiber disk and then the washer. Once they are replaced you'll need to stake them into place with a hammer and punch. As far a buying the parts separately good luck. They come in the oil filter header assembly and on the 97+ years they are held in place with a snap ring.

 

Yep, they both fell out of that hole, and are quite essential to ensuring that the oil flows properly through the filter. I don't remember their exact function, but I know that this was a problem on earlier model powerstrokes. On later models an internal snap ring was added to keep the parts in place.

 

I replaced mine with a '99 cooler when I noticed my spring and disc (bypass valve) were missing. I was able to replace it without disturbing the engine mounts at all. The clutch slave pops off the bellhousing easy for some extra wiggle room.

Without this valve, the oil is not forced through the filter... it simply takes the path of least resistance an bypasses the filter.

 

If you can't locate the fiber disk, you may end up having to buy the updated header. Replacing it is sort of a messy job. If you do need to go this route, here are some part numbers:

Oil Filter Header (updated snap ring retained check valve)
(Ford) F81Z-6881-BA

Oil Cooler Housing Gasket (front)
(Ford) F7TZ-6A636-AAA
(International) 1831666C1

Oil Cooler Header Gasket (rear; oil filter end)
(Ford) F4TZ-6A636-AA (97-up)
(Ford) F4TZ-6A636-B (96-before)
(International) 1831665C1

Oil Cooler O-Rings (one each to seal cooler at each header)
(Ford) E3TZ-6C610-A
(Ford) E4TZ-6K649-E
(International) 1807563C1, Inner 1804414C1 Outer

The oil filter header lists for about $240, but check Tousley Parts Depot or Powerstrokeshop.com for better prices on these parts (Tousley seems to be cheaper these days). Cheers!

 

HI. Thanks for the information. I was wondering if I was able to find another fibre gasket do I just seat the assembly (spring-fibre gasket-washer) back into the hole of the oil filter header with a punch. What will stop this assembly from falling out again? Is there a lot of pressure throught this valve? Why can't I use something like Garlock paper to make a fibre gasket? Thanks

 

Yes...you can just re-install the spring fiber gasket and washer and re-stake the hole and it "should" hold. This happened to me once and I reinstalled everything and it is still staying in place.

Griz

 

I got a complete used '99 oil cooler for $125.

Ford wanted over $300 for the updated header. IH wanted over $400.

 

After 2 years of sitting on the parts, I just had my Oil Filter head changed along with the gaskets.
Oil Filter Header (updated snap ring retained check valve)
(Ford) F81Z-6881-BA

Had local Ford do the work along with a drivers-side exhaust manifold change out, used a $200 service credit.

I forgot to really take another look at the new parts and spend time with service advisor to go over the different head and the old pieces falling out but I'm assuming the new oil filter head had the spring,valve, ring already in place as shown here, or my truck would not have run?