Sande, the shiny side goes towards the heat to reflect it back and away from your hand or table.
That said, I never use the stuff. Hate it. It's more trouble than it's worth, is a waste of money, and was simply 'invented' by the Warm Company to create a need. Very successful they were at it too, judging by how many people here thinks it's indispensible for hot pads and potholders. It's all pure hype.
You do all realize that InsulBright itself is polyester, don't you? And that polyester melts under extreme heat? So what's the point?