I know how NOT to do it - it's not easy getting this right. I really screwed mine up, so hopefully I can help you avoid the pitfalls.
It is true, that the seal does not seem to fit at first glance, but it needs a little twisting at the ends, so that the felt faces upwards.
I did the mistake of gluing it all in at once and taping it in place with masking tape. But I had not let the glue sit for a couple of minutes to dry alittle before that with the result that glue was all over the place and when I removed the masking tape, most of the seal and the felt covering came off with it. I then redid it a little at the time, letting each section (10 centimeters or so) sit for a while before proceeding. When I reached the end, I had something like 5 centimeters to spare. I then took the whole thing off again, cut a small section out of the middle and redid the whole thing from the corners and inwards. That worked better, but it still looks shabby and comes off occasionally when I lift the lid.I'm going to redo the whole thing, clear off all excess glue beforehand and be more patient next time. Hopefully, someone will provide you with tips on how to get it right - I think the subject has been covered in a previous thread.
Good luck!
Ulf