I've been unable to find a good illustration of where the windshield spacer goes. Is the below figure correct?

Click to view attachment

No, not on the clips. I've put them at 1/3 across bottom, then set the windshield in place (dry) and check the spacing, it should have the same gap top and bottom, if not shim or shave the spacer

Like this ?
Click to view attachment

Yes. With help set the windshield in place and make sure you've got a nice even gap all the way around, before you take the next steps.

Also I like to use 3M butyl primer on the surface that you'll be putting the "tape" on. It's been several years since I got any but it's $pendy, at like $19 for a very small container. It's black so it helps to keep the painted surface underneath from shining through and helps the "tape" stick better

Looks right. Make sure you use the right thickness of Butyl (IIRC it’s 5/16”...but check with 914rubber) if you use anything thicker than spec, it may be difficult to get the trim to snap in to the clips. And don’t forget to put all of the trim clips in first (ask me how I know).

Some tips on laying it in...

Test fit without butyl and get the gaps perfect. Then put painters tape across the glass and frame on the top, bottom and sides, like a cross. Draw a line with a sharpie across the tape, bridging the gap between the frame and glass. Then use a razor blade to slice the tape in the gap so half of it stays on the glass and the other stays on the frame. Remove the windshield, prime the frame and add the butyl. Now, when you go to place the glass, it’s a no-brainer to line it up perfectly. Just get the sharpie lines to match up again and lower the glass onto the butyl. Be really careful pushing the glass against it...especially around the edges. Easier to see than to describe, but you get the idea. I’ll shoot a video when the bumblebee is out of paint....

I test fit the windshield today and everything looks/feels pretty even except the left bottom corner. I'm sure I can make it work with a little variation in butyl thickness, but was wondering if there is something I'm doing wrong.

I also placed a small pad on on the top rim, but noticed the glass was leaning on the interior trim without it. Is this normal and the thickness of the butyl ensures the glass is supported by the frame and not the interior trim?

Also, could someone verify I installed the dash to windshield seal correctly and don't have it backwards?

Thanks

Another tip is to have help handling the glass

I've been shimming under the glass to get all the gaps even all around. A few questions:

1) "Depth" wise should the glass be below the outer frame or "level" with the outer frame curvature?

2) To get everything even the glass seems to be about 10 mm above the pinch weld (hope I'm using that term correctly). I've read 5/16" is the correct butyl, but 3/8" appears more correct and is all 914Rubber offers. Any comments?

3) Do most people use square or round butyl tape? I'm really asking which is easier.

Actually this looks like the glass spacer for the Rear window glass.
The Windshield spacers look more like a block with a crease (long) across the top.