I used the towel method with a regular hammer, and mine looks great.
The two things to be careful of are banging too hard, and getting the molding in too deep.
I used VERY soft taps, and just kept tapping until it seated to the correct depth.
That way I didn't ding the molding in a particular spot by hitting too hard, and it didn't go too deep because it took more than one hit to get it where it needed to be.