Hi kiwiman ... yes, between the fret wires, not on them. Check out some of the movie lessons posted at this site. You'll be able to see where the fingers go. Just think of the physics: what you're doing is altering the length of the string when you press down on it. The fret wire is where the string is stopped and it should make good firm contact with the wire in order to ring cleanly. If your finger was right on top of it, you'd be muffling the sound. You'll find (as others have pointed out) that pressing the string into the fretboard right behind the fretwire gives the best sound.
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