You need the spacer. It's used on hubs that are 8-9-10 speed compatible, like yours. It goes on the hub first, then the cassette goes on as usual.
If you don't install it, it's likely your cassette will have some axial play that may cause poor shifting and funny noises.
Here are Shimano's Service Instructions explaining it:
http://techdocs.shimano.com/media/te...9830605972.PDF
According to Shimano the spacer is 1mm thick:
http://techdocs.shimano.com/media/te...9830608753.pdf