correct rear stripe for a 1972 340 demon??

You are correct about the vinyl covering the stripe, the paint and back to the stripe... if not installed correctly there could be an air gap where the vinyl steps down and back up. I've been in the the sign and vinyl graphics business for a coupLe decades so I should be able to offer some installation tips that will help. However... I am heading out the door right now and I'll add some notes on installation later tonight.
Great. My other issue is this. My stripe kit for the rear has that small panel which drops down to connect the upper stripe to the lower stripe which is where I am assuming I suppose to place the Demon name with the little devil art. Now, that drop down black panel is closer to the right tail light so that if I try and place the 340 in line and right next to it, the 340 would actually go into the tail light area?? If I cut the 340 away from the decal and separate it, I can then move it over to the left and I would have to place the 3 under the letter M in the Demon in order to fit it?? This leads me to believe that the 340 is suppose to be installed directly on the lower stripe and moved over to the left so that the 3 is directly under the M?? Otherwise it does not fit?? Any other ideas on this??