[montanafordman]

You would want them even, I had my shoes lined and they were flush with the brake shoe but I also used an angle grinder to bevel the edge slightly (I beveled about the last 1/4 inch of the lining on both ends). I have heard this prevents squeaking. I'm not sure if it was a result of that, but my brakes are quiet. If you grind or sand away the lining I would wear at least a dust mask when you do so as MikeK mentioned.