I've used both the vinyl tape and inner tube approaches, and both work well. Never used the cloth tape method, but I never was a big cloth tape fan, especially once I discovered Benotto tape.
However, I generally now use a new-school solution for an old-school problem. I've installed, oh I don't know, many hundreds maybe, of cycle computers in my many years of working on bikes. They all came with little bags of rubber strips/spacers/bands in all manner of shapes and sizes. Some with lips or edge beads. Some with flared or thicker ends. Being the pack-rat that I am, I started throwing the leftovers in one of the drawers in a parts cabinet. I now use them for just the thing in question, as well as for shims, pads or spacers as needed. Got a whole drawer full. Trim 'em, cut 'em into shapes. Whatever you need.
Sometimes I think I have too many drawers and bins of leftover/donor bits and bobs, but sometimes they really come in handy.
Black Market Bikes