You don't need to have your hand a mile high off the guitar. Just so long as you're not pressing down against the guitar, it's not detrimental to be touching it, although it looks like you're creating a noticeable pivot point where your upper arm rests on the guitar. Watch PG here for a good example of picking: http://www.youtube.com/watch?v=CpJNUGHxC3M

Also, there's too much picking motion coming from your elbow. You really don't need to be expending that much effort. Just very small motions from your wrist. And the way you hold your pick looks a bit strange. It looks like the tip of your thumb is pressing into it; I'd suggest resting it between the flat of your thumb and the side of your index finger.
Last edited by fixationdarknes at Jan 24, 2009,