I am knitting a pair of wool longies for my son and this is the first project I have done in the round. Now that I have some length to them the material is coming out towards me. I can’t tell which side inside and which is the outside… Should the tube of material be going away from me to make it the correct way? Hopefully you understand what I mean… TIA!! 
You should be knitting on the side of the circle that you would drink out of if it was a glass of water.
But if the stitch is one that is the same on both sides it probably doesn’t matter.
There are some people who knit on the inside, but that produces an inside out project that you’ve have to turn right side out. If you want reverse stockinette on the outside that is one way to do it. Generally though you knit on the outside of the tube so the circle of knitting is away from you.
The one thing that is dangerous about habitually knitting with the piece inside-out, is that when you go to knit something that’s attached to something else, for instance the thumb of a mitten, it will be inside out [I]relative [/I]to that mitten. So for that reason it’s good to get in the habit of holding the needles the way Mike said (nicely said Mike!).
If you want to get in the habit now, you can simply turn your project right side out while still on the needles…then you’ll suddenly be knitting in the standard orientation. It’s that easy to switch back and forth (when it’s not attached to a mitten ;)).
I learned it here 
But think about the design feature of a rev st st thumb on a mitten!