Dan,
> I should be able to install 3 corner mounted, 2 foot by 4 foot, 3 inch thick, 705 bass absorbers. <
That's a great start.
> Should I use 1 inch or 2 inch or a combination of both? <
For early reflections and general mid/high frequency ambience control, one inch rigid fiberglass is fine.
> Paper in or paper out? <
For mid/high absorption you want the fiberglass facing toward room.
--Ethan