The lip goes towards the tire.
If your old bearings didn't have a lip built into them, then there should be a ring that is seperate from the bearing. Be sure that ring gets removed from the axle, before you press the new bearing with the built-in ring on.
I've heated bearings before. You don't want to get them smoking hot, but a couple hundred degrees shouldn't hurt anything. What I usually use to put the bearings on is a long steel pipe that just fits over the axleshaft and then use a hammer to drive the bearing on.