Hi Jeepster, I just did mine, went in prefectly. The seal does belong on the boot lid. The channel in the shroud is to keep water from running into the boot. The seal on the boot lid seals against the knife edge on the shroud channel. The seal has a " V" shape moulded into it. If you look at it closely you will notice that one side of the " V " is thicker. This thicker side will be on the outside edge of the boot lid when you lay it correctly. The thinner side of the " V " is the side that seals against the knife edge of the shroud channel. I bought mine from Moss and had no problems with it. Lay it around the boot lid perimeter dry first to get the fit. You will probably cut some off as the length is more than needed. As i laid it dry, I taped it into place about every 3 inches. When I was satisfied where it was to lay, I removed the tape stripes about a quarter of the way around and glued with the " Best Weatherstrping Adhesive" you can buy. Usually this type of adhesive is the kind where you apply the glues to both surfaces and then let it sit for a few minutes then stick them together. As you stick the glued seal to the glued surface of the boot lid, use the tape again every few inches to tape perpendicularly across the seal. Let it cure for 24 hours before u touch it. Good Luck, Dave.