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Does the drywall get placed over the lip or meet at the lip?

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Can you share a photo of the lip you are talking about?: – Matt Johnson Jun 25 '13 at 21:11
youtube.com/watch?v=MD1ETF5g0-M&t=3m50s See video. – iambriansreed Jun 26 '13 at 4:17
up vote 2 down vote accepted

It goes over the lip, but you need to add some shims (vertically along each stud), to transition the drywall out, so it doesn't break when screwed down.

A bit of J-channel (over the lower edge of the drywall) makes a nice clean edge.

Leave the drywall 1/4 - 5/16 above the surround edge and fill with a waterproof caulk.

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Ok that makes a lot of sense. What kind of j-channel would you use? – iambriansreed Jun 26 '13 at 4:25
I like the plastic channel in baths. I've seen it in 1/2 and 5/8, be sure to get the right thickness. – HerrBag Jun 26 '13 at 11:58
Thanks. Great response. What type of J-Channel would you use (a link to a Home Depot/Lowes product would be great. For the shims do they have precut shims at the depth I need or will I have to do a little carpentry? – iambriansreed Jul 6 '13 at 0:31
I put the j channel link in my answer. For shims, I like the longer cedar ones (18") They're wider than you need, but you can split them. Just cut them at the thickness you need to get the drywall to slide over the lip (with j channel in place ;-) ). I would use a polyurethane adhesive to attach them (two brads until the glue sets) – HerrBag Jul 6 '13 at 12:22

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