Jon-- I taper my top braces to nothing, then tuck them under the linings. Actually, I leave a micron or two of wood--you can still see the grain lines--but the height really is negligible. This is done on everything south of the soundhole. The forward ends of the X as well as the transverse brace are all notched into the linings. Mario once put my thoughts into words when he said that the pull of the strings forces the back ends of the X into the top, while trying to force the forward ends down away from the top. Thus, those get notched into the linings for support. (Or entrapment?)
Back braces are done conventionally, only like some here I don't cut through the side, but I do cut the brace end short of touching the lining.
Steve
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From Nacogdoches...the oldest town in Texas.
http://www.stephenkinnaird.com