Jim, I've done a bit of lining and I think lower is better. The cover is very usefull, really helps in wind, will hold packs/gear inside and keeps them much dryer. Only dumped once and the cover kept the canoe from filling, after getting to shore there was only 2 to 3 inches of water in the boat [the cockpit was rolled open]! Cover stays on all thruout the trip, just a couple of snaps and the gear/bags are out.
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Nice mods Jim!

butthead