I've always put the fuzzy side up and so far so good.
Also ebay has options for these that are decent

Thanks for all the advice here. i got the sunroof back together and reinstalled. I haven't put the wind deflector back in yet, want to take care of some rust on it first.

Can anyone advise how to raise the rear height of the sunroof?

I noticed on the rear of the frame there is a little ramp on either side that the rollers travel up when you turn the sunroof handle to close. You can adjust the angle of these ramps which effects the closing height of the rear. However when i adjust these angles it also makes the mechanism handle more difficult to close which makes me nervous it might break.

So I'm wondering if there is another adjustment i am overlooking.

I have never adjusted the ramps. There are some wedges that turn and increase or decrease the final closed height of the sunroof. They are gray and you loosen the bolts holding the roof panel and pivot them to adjust. sometimes they are broken off or don't get put back in when somebody removes the sunroof. If they are missing use some plastic wedges (I've used tile install wedges) to jam in, thus increasing the final closed height. Take your time patience pays off with getting it the correct height.

The adjustment of the ramps should not have to be that much. When closed, the sunroof panel should be just 1mm higher than the car's roof (1mm lower in front) - measurement taken at the center across. If it still feels too tight, the closing rods can be adjusted laterally.

Thanks. I think I've got it adjusted correctly now. Still feels a little tight but I can lock it using one hand so I don't think I'm putting too much pressure on it.

As a last request I'm wondering if anyone has good advice on re-installing the wind deflector? I've read several threads and the wiki on sunroof/wind deflector servicing, but when I try to actually install mine it seems way too difficult and I'm worried about forcing something to the point of breaking.

I got new brackets because my old ones were cracked. One of the problems seems to be that the bracket gets caught on the lower most edge of the new front seal i installed and I can't figure out a good way to get it past the seal. Have others run into that problem?

To close out thread, I finally figured out how to get the air dam installed. Once you have everything lined up it goes in quite easily. As others have said, don't use force when doing this procedure.

My sunroof is now-reinstalled and working great :)