I checked out the seal again; yes, felt side up is the same as the rippled side, with the yellow stripe, up. The seal really is two strips connected at the factory; on one strip, the lower lip of the rubber is longer than the other; this shorter lower lip goes into the rear rail. There are two seams where the trwo different rubbers are joined; these seams are on each side, about 2 inches from each rear corner; if you feel around on the rails you can find the "notch" where the seam fits the thicker lower lip.

This job was a PITA; I found broken rivets on the rear rail, which I revited again, and some rust clogging the groves, which prevented an easy fit, and I had to remove it. Also, in some places which were too tight I had to insert a wedge and tap it with a hammer to widen the groove. Finally done, and I hope it lasts the life of the car (its on my 1987 300e). BTW, the old seal, which cracked last year, was dated 4/99, so it lasted 7 years. Thanks, guys, for the input in the prior posts.

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87 300e (white/black; amg body kit)
88 300ce (red/cream; amg body kit)
93 300ce cabrio (white/blue/blue top)
93 300ce cabrio (black/grey/black top)
98 ml 320 (totaled @ 137,000 miles)
99 clk320 (black/grey/black top)