It will sweat? That just makes me confused...
As far as what is correct, think about it. Water flows downhill, so you place items in the assembly to shed water. The drip edge is the last thing the water touches before it leaves the roof. Assuming the shingles themzelves aren't there yet; the water runs down the felt, onto the drip edge, and off the roof. If you place the drip edge on top then the water will run down and under the drip edge down the fascia, across soffits, into walls, insulation etc. For those that say caulk it on top, I emplor that the definition of a bad design is one that relies on caulk for water tightness.
Here's an image:
http://www.inspectapedia.com/BestPra.../Figure2-6.jpg
Edit: Just realized the attached image has the drip edge on top on the rakes. This is correct and may be adding to the overall confusion. Final answer: On top at the Rakes (Gables), On the bottom at the Eaves (Soffits).
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