Doing floor console from column got the speedo installed after a few bad words. Now installing new carpet. Do I cut out carpet around shifter or mount shifter on top of carpet. When I place shifter on top of carpet the front of the shifter pulls carpet down in the indent of the hump.

 

On my 69 I bought carpet that was cutout for the shifter. But I am also installing a console. So what I am going to do is install the rubber over the shifter to the carpet to seal it. So when I put in the console it will cover that part of the floor.If I were you I would think about cutting the carpet to fit the hole for the shifter that way it wouldn't pull on the carpet when shifting. By the way what part of western pa are you from. I am 30 north of pitts.
Alb

 

The shifter was originally mounted right on top of the floorpan metal....no carpet, no insulation, etc between the shifter housing and the floor.

This provides a SOLID and STABLE mounting method....just like the factory designed it to be.

You aren't going to get water coming in, etc doing this so that shouldn't be a concern. Cut flaps on the carpet (a little at a time) until you get an opening large enough to slip over the shifter. Don't start by cutting out a big portion as you may be off and end up with an unsightly opening peeking out from under the console. A little at a time, test fit, cut a little more, test fit again, etc.

Doing it this way will prevent the problem you mention (pushing the carpet down when you try to mount the shifter OVER the carpet). Use jute padding to pad and build up the trans tunnel so the carpet will be supported from underneath. That way you won't get the wrinkling and folding that may occur if there's a gap b/n the tunnel and the carpet with the carpet later trying to settle downwards.

Once you have it all cut out sufficiently to mount the shifter you can trim away a bit of the excess carpet that's laying up against the sides of the shifter. Leave some of the flap material laying up against the sides of the shifter.