Giant OCR1 2004 - help with seatpost shim and collar fit please!

A newbie would gretaly appreciate some help from anyone who either has a Giant OCR or who knows what they're talking about.

How does this bike's shim and collar fit together? Does;

(a) the collar fit on top of the bike frame, with the shim then inserted into it afterwards, so that the shim teeth/lip rests on top of the collar?

or

(b) the shim is inserted first, the collar is fitted over the top of the shim and rests on top of the shim lip/teeth, rather than making direct contact with the top of the bike frame?

or

(c) the shim is inserted first, the collar fits around the shim lip/teeth so that it (the collar) makes full contact with top of the bike frame and the shim lip/teeth protrude slightly above the top of the collar when viewed from the side?

Asked at my LBS and got two different answers (both a and c). I currently have it set up in the (c) position but I'm worried that I may be doing damage to the frame and the shim - the collar has left indentations in the shim lip/teeth where it makes contact.

Please could somebody advise? Am I currently doing damage to my two-wheeled friend or inviting any problems in the future?

Really would appreciate any help!


Gilders