Robert,
Note that Side Farther from or Closer to Page Edge refers to the side of the text frame that is farther/closer to the page edge. Thus, if the margin on the binding side (inside) is larger than the margin on the outside, you want to select Closer, because the outside edge of the text frame is closer to the paper's edge.
I have not tested what happens when both margins are the same. Maybe this is your situation. If so, make one of the margins a little bigger than the other, then choose farther/closer accordingly.
Van