Soda,
No 'right/wrong' here.
I do it most often as Jim does, mainly because it's fast and easy and works fine. You can use any type of terminal knot you want to tie the tippet to the bend. I prefer the Palomar, bacause it's sronger, then I use the weaker clinch to tie the dropper fly on. That way the if it gets hung, the fly breaks at the knot, leaving the tippet in place.
Another option is to use a uni knot to attach the length of tippet on the leader above the dry. This connection will 'slide' with a bit of pull up the leader, so that you can change the dry fly if you want without having to rety the dropper tippet.
It's great if you are using a really high floating dry (I tie some with foam bodies for this) that won't be negaively effected by the weight of the dropper pulling on the eye.
This set up does foul easier than tying to the hook bend.
I also tie some flies with built in 'dropper loops' of monofilament tied in below the tails. This gives a solid tie in point for the dropper and doesn't adversly effect hooking on the lead fly. Less fouling with this set up as well.
All work, and I find that I use different ones for different situations.
Good Luck!
Buddy
It Just Doesn't Matter....