I can't swear that it's the "correct" way ... I don't remember where I originally got my info from about that ... but I do know I research things well before I go ahead; I was sure that was the correct way when I did it; and everything works great, so I'm 99.9% sure this is the way.
Also, since the idea is to create some compression between the rubber and the door-frame when the door is closed, it sure doesn't make sense to "hide" the crown by tucking it into the corner where it can not compress.