The primary purpose of damping material is to block the back wave of the woofer to prevent midrange reflections and to inhibit standing waves. We find that placing the material behind the woofer midway to the back of the cabinet works well. There is no need to glue the Dacron - just over size the cuts and it press fits just fine.
The addition of damping material can also help trick the woofer into thinking it is in a larger enclosure. If your bass sounds a little boomy, stuffing the enclosure may remedy the problem. With vented systems, be careful not to black the port.
For 6.5" woofer, usually a running foot per woofer is the norm. For subwoofers, about 6-8 running feet works well, depending on the cabinet size of course.