Start wherever you are comfortable starting...doesn't matter...just ensure you're centering the pattern on the fabric! :)
About the "fuzzies", it could be the metallic threads in the fabric...try cutting your lengths of floss a few inches shorter. I would try that before trying the Thread Heaven. There is another thread conditioner that's supposed to help avoid damage from lights, sun, smoke, nuclear attacks...yeah, what are you going to do if doesn't do all its miracle stuff and you took all that time to run each of those threads thru that stuff? I can see the reason for using it with metallic...with the regular floss, not so much. :)