Hello Wil, and welcome to the forum!
The cdi "wire cut" is a little confusing, as you cannot actually see the wire..it is inside the casing of the cdi...
..If you look at the pics, you can identify the correct edge by removing your cdi, place it beside the pics, and just file it away...maybe use a hacksaw...that'll work too..make the cut look like the one in the pic...then just cover the little gap with some electrical tape or epoxy...
..and for derestricting your variator, no washer will be required, as it is the washer that is actually "restricting" how close your pulley halves can come together...
peace
click on the pics for a larger view