most people put outputs on the top row, inputs on the bottom row.
you can use normalled pairs (or half normalled) to create connections that will be commonly utilized, so that you don't have to bother with a patchbay. (For example, direct out of mixer channel one into tape channel one input). If you bring your insert points to a patchbay, they will have to be normalled as well so that you don't break the circuit by having a cable permanently plugged into the insert point.
Just be careful on normalled pairs not to set up a feedback loop. For instance, if you had an output of an effect or processer box directly over the input of the same box, you would not want them normalled, or you will get an infinite loop. For the same reason you wouldn't want a tape channel output normalled to the same channel input - because if you forget to plug a patch cable into one of them, as soon as you put the that channel into record you will blow out your speakers!
The best idea is to make a drawing of the patchbay and work out on paper exactly what will be going in and out, and what the most efficient arrangement will be in terms of placement and normalled/open configurations.
