I play index (if I didn't state in my above post) with my wrists at the edge of the desk. It feels more relaxed and natural. Plus, I can hit streams more accurately and faster. That's just me though.
I'd say work on your speed on stepmania as well up to c600, which would place you around x1.75 on FFR.
As for hand placement, edge of desk as said above. My varation of that, which I do, is just having my forearm of my right hand on part of the desk on which my computer sits (its in a L-shape.)
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