Generally, you measure the rebate in X and Y and subtract 10mm from each. That becomes the dimension of the glass. That said, if the beads are skinny, most units have about 11mm spacer bars around the outside and an associated primary seal. You don't want the primary seal to be exposed as it quickly degrades in sunlight and looks horrible if it is visible. Some companies will sell units with a skinny spacer bar (for heritage windows) but these don't tend to last as long as the standard units. You really want the units sized so that the spacer bars sit just inside the bead edge - but the gap around the outside is important.
As others have said, the units need to stand on spacers at the bottom. This sets the sight lines correctly but, more importantly, keeps the units from sitting in water if water gets behind the beads.
You can attach the units to the face of the rebate either using galzing tape (and the spacers) and this will hold them in place. Equally, you can attach them using silicon. A thin layer all around the edge holds them in nicely.
As for the beads, dry glazing is simply that you nail the beads into place. Water will drain off the units and down into the bottom of the bead. It's vital to ensure that the water can vent away, otherwise it will puddle and rot the bead and the unit. Generally, a nailed in bead is enough but vent holes to the bottom of the frame are preferable.
Personally, I prefer a wet beading. I run a continuous line of sealant all along the inside of the bead (where it contacts the window) and then nail the bead into place. I do not put sealant in the gap between the bead and the frame as this provides a water channel (to some degree) for any water that does find its way behind the bead to escape.
Some people put a bead of sealant on along the line where the glass meets the bead. I find that unsatisfactory as it's always too thin and prone to coming a way.
Low modulus silicon sealant is what should be used. The silifix U9 is good stuff but most decent brands (such as Soudal or Dow) should do a reasonable job. Don't buy really cheap sealant, it's false economy.