At this point it was time now to cut the grooves around the lids. The lids will have a 1/8" deep (offset 1/8" from the edge) groove cur around the outside end grain of the lid. The lid is 1/2" thick so this will have the affect of "raising" the lid above the box sides creating a profile. Again using the zero-clearance insert jig I built earlier, it was very easy to cut this groove. Simply setup the blade to cut 1/8" from the fence about 1/8" deep.
One hint offered in the article about cutting this grove along all four edges is how to avoid tear out along the end-grain. By cutting along the end-grain first (narrower sides) this causes the final lengthwise cuts to cleanup any tear out which occurred. Doing it the other way would leave the tear-out making it less attractive. A really good idea as a small amount of tear-out almost always occurred.
At this point the final step was to once again, layout the box sides end-to-end and secure with masking tape. Using a brush, apply glue to all the mitered edges.
Now working quickly, insert the top and bottom pieces and fold up the sides securely around them. Use one last piece of masking tape to secure the two ends together. The box should fit snuggly around both the lid and bottom. Check for alignment and make sure all joints are secure.
The final step in the glue up process is to band-clamp or otherwise tightly secure the sides together so that the glue can dry completely and securely. The following photos should this process.
I repeated the procedure for the other 2 boxes as well. Once dried I removed the band clamps and finally they are starting to look like very nice boxes!