The tape I recently bought from Classic Parts has a rubbery/grainy side and a smooth fabric side. I assume the rubbery/grainy side is the soapstoned side described in the Shop Manual. I put that rubbery/grainy side on the outside (not the glass side).
You are supposed to oil the groove in the metal frame and then tap the glass-with-tape into the channel.
There are different styles/compositions of glass setting tape. What vender and part number do you have?