If you bought a kit, there should have been gaskets / seals for the part of the inner fender that connects to the firewall. I don't see why a set made from tar paper wouldn't work just as well. I used weather strip adhesive to attach them to the inner fender. Here's a couple pic of my 1954, under hood and under the left front fender. Should provide some help with the sponge rubber, even though the 1947 - 1953 fenders are not exactly the same as a 1954 due to the parking lamp lenses....
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Ron - - Dusty53
1954 Chevy 3604
In the Gallery Forum
"You can't dance with the Devil and then wonder why you're still in Hell."
"They will forget what you've said, and they will forget what you have done but they will never forget the way you made them feel."