I'm using a paper faced metal corner bead for my inside corners but I don't really know how to finish them. They are already embedded in drywall compound and I have two coats on them already.

My question is this: Do you apply the drywall compound on the corners up to the metal edge? Or do you apply the drywall compound on the corners and cover the metal edge (in other words, the drywall compound creates its own corner where it meets)?

I thought that I would apply my coats and scrape off the metal corner bead after each coat and finally I would paint over the metal corner bead. Is this how it is done?

Metal corner are only used for outside corners. For inside corners you simply fold the paper tape to 90 degrees and tape just like any other joint. After embeading the tape in the mud, put a coat of mud on one side, let it dry. Next day you finish the other side.

Drywalling looks easy but a good finish reuires some practice and skill. You should consider reading up on the internet or at a home store that sells handyman books. The metal you are using isn't for inside corners like Harold said. This will save you a trip to the store Taping Drywall Step by Step Instructions - How To Tape Drywall

I think I may have answered my own question. I found the website for the product (or close to it). The product I'm using can be used for outside or inside corners.

http://www.usg.com/USG_Marketing_Con...tion_guide.pdf