Thanks Danny, for your input.
I went ahead and swapped it around and drove it around quite a bit yesterday and it's all good now. I don't know why I thought it was more notchy than it should be the first time around. But it's good now.
Anyways... since I did this DIY 4 times, all to switch the orientation of the shift lever around, I figure I offer some information that could help out others.
1. One of the important tip offered by others is to work on this DIY when the car is cool because you'll be close to the exhaust. But the rubber boot is a pain to remove when it's cold. So if you plan to work on this yourself, you could do the first part of the DIY (removing shift knob and boot) while the car is warm. The heat of the car will soften the rubber and make it easier to work with and remove.
2. Circlip. I find it easier to remove when inside the car. Just rotate the circlip around such that the "opening" is facing up (inside the car) and while sitting inside the car just take 2 screw drivers and push the circlip out.
3. There are a lot of tip here trying to suggest the correct orientation of the short shifter lever. Basically the bend should be facing towards the front of the car... this may be true for the 335, but in my case (e90 - 330) the correct orientation for the bend is actually towards the rear the car. Like everyone said here, there really is only two ways to install this, so if it's not correct one way, than it must be the other way. The symptom for the 330 when the lever is installed wrong is that when you put the lever in 1/3/5, the lever will be too close to the front trim such that it almost touches.
All in all, once done the short shifter is great! I love it. Much better than stock. However, I stuck with the OEM knob, I actually like the height of the shifter the way it is now (short lever + OEM knob). I am not sure if I would like it even shorter by putting in a shorter knob.