I would recommend one of the height rings that comes with the high lip trackballs. I would use a dremmel to take everything off except the ring and attach that.
If you're talking about the part QB listed, that's the entire upper case of the TB, and would not need to be modified, just attached. That is only for folks wanting to add a higher lip to their standard trackball. If you're talking about part #95-1828-00, that's the spacer, and won't work. It has a hole in it that fits
around the high lip, for the purpose of
lowering the TB (and lip), not raising it up.
Teknique: If you want the lip to sit 1/16" higher, then maybe you can very carefully sand 1/16" of plastic off of the top side of the trackball housing, thus allowing the lip to sit up at the height you want. Should provide better looking results than trying to add 1/16" of plastic to the top of the lip, if you can remove that much material, and leave it flat.
Or, you could try rounding over the edge of the TB hole on your CP with a router. Or just painting the inside edge of the hole black, so that it doesn't show so much. But if you really want to try to build up the lip, I'd use JB-Stik, or similar. It's a paste epoxy- once you mix the two parts together, you've got something like Play-Doh, that you can shape and mold- but when it hardens, it's like a rock. And it's sand-able once it's hard. (Be careful not to scratch your laminate with the sandpaper.)