DRAFT-I intend to add more detail to this post later
In this picture from the first Herbie movie, you can see that the stripes didn't go onto the apron, and only on the hood (same for the rear of the car, they only cover the decklid and don't go onto the body below the decklid. The instructions included with the decals say to put it on the body, however, that is for all the other movies after the first one. To look like Herbie in the first movie, we need to not put the decals on the body below the hood and decklids.
Also, after the first movie, the blue color got considerably darker. And the only high quality decals we can get (from Greg Carr aka Doctor Herbie) use the darker color blue of the later movies. To get our light blue color, Brady actually painted over the dark blue on the decals to match the light blue color. I think he was dead on with that color as seen in this picture of my recent work done:
To be finished: add details about getting and installing decals...