Seaside,
You sew the lines on the front, but your fabric is under the paper, so when you finish it should look the same as the picture. If you want to reverse the image then you can do as Macybaby suggested. It can be frustrating at first, but don't give up, it is a great skill to have. If you have a LQS, see if they have any classes, it makes a big difference seeing and working in person. If not take some time to look at some tutorials on YouTube. Here are a couple to get you started.
https://www.youtube.com/watch?v=8uaW26igygE
https://www.youtube.com/watch?v=X5DMxDfYlw0
https://www.youtube.com/watch?v=S01SEN1304A