I had the same question this past weekend. I chose the smallgroove/writing side up, and the big groove down.
They sealed up fine. But then again I've only put 50 miles on the bike since I changed the seals.
MF Battery, Iridium Plugs, RR relocated, Voltmeter, 170/80/15 Kenda Kruz rear tire, DIY Samsonite hard bags, DIY shaved seat with Beaded seat pad ('cause that's how I roll) and the dreaded STATOR CHANGE.
Shining Black Bess '86 VN750, retired for parts after a fried stator and being knocked (kee-runch) in her parking spot.