Perfectly. It's yeast and proteins dropping out. For your first batch, try to avoid drinking it. After that it won't blow your colon up and you're free to drink it down. It's chock full of vitamins.
While you can drink it down as the above poster says, most of us find that it doesn't add much positive the taste of the beer.
Pour the beer into a glass and don't stop pouring until you reckon there's about 1/2 inch left in the bottom. It takes some practice, but you'll soon be an expert.
Looks normal! My first couple of batches looked just like that.
Like the others said, pour it into a glass and enjoy. Just leave the last little bit (1/2 inch), but make sure you rinse the bottle really good too if you plan on reusing the bottles. If you let it sit then you have made your job harder trying to clean them later.
In my laziness I drank a Pliny clone last nite from the bottle.
I ended up dumping the last 1.5" of the bottle because it didn't taste like it should. It was thick with the sediment that would have stayed on the bottom had I poured it.
I rinse every bottle thoroughly immediately after pouring, filling and shaking and dumping 4 or 5 times.
Agree with the cold crashing. It's amazing the difference. The only other way to avoid this is to leave in the fermenter until it all drops clear. But even then I've noticed a slight difference with cold crashing.