Hi ;-)
The damping should ideally be similar to
this one.
I've used some felt (I found some in the basement) and some very cheap isolation glass wool. Apparently, glass wool would be the best you could find, but is not used anymore because it could be dangerous when not used properly.
I guess the main purpose of the felt is to diminish standing waves. Note that a rectangular shaped loudspeaker is not ideal... but easy to construct.
Glass wool is probably for damping, so position should not matter to much.
Do you have any idea how i could hear (measure?) if the damping was not done correctly?
ps: excuse me for mistakes, i'm not English speaking ;-)