In theory yes you would screw down to the top of the eyelet, but the eyelet should be even with the top of the rubber grommet as it's shown in my diagram. However, in practice it usually doesn't work that way. Usually the eyelet does not come to the top of the eyelet. The problem when you screw down to the top of the eyelet is that you compress the rubber grommet. When the grommet is compress it removes all shock absorbtions properties from the rubber, which then defeats the purpose of the grommet. It is there to isolate the servo from the vibrations of the airframe. If the grommet is compressed it can no longer isolate the servo and all vibrations will translate directly into the servo which can cause the servo to fail.

Ken</p>