The middle of the finger pull/lock mechanism gets recessed into the door, while the plate overlays the door, standing proud. But I like to recess the 1/16" face plate as well, where the whole thing is flush with the door. It not only looks better, but if your pocket door frame is tight, this keeps the plate from getting scratched on the frame, when opening and closing.
Every Carpenter needs to keep a tube of lipstick handy. After I mount the lock mechanism, then I take the lipstick and cover the strike face with it. Then I close the door, turn the strike knob and the lipstick sticks to the jamb where the strike hits it. No guessing where the strike plate needs to be attached. The lipstick locates it perfectly.