Thanks for the tips. One of the CR's was explaining hanging off and I never really got a chance to put it to practice. She was talking about keeping the outside arm fairly straight, and kind of pushing the bike away and upright while leaning off. So if I understand this, if I drop my should as your saying and get lower I will be able to stand the bike up further?
I agree about the legs and lower body, there were times I felt like I was gripping the bars way too hard, in fact my wrist hurt on the throttle side and I got a blister on that hand after the weekend.
You're outside arm is going to be stretched further than your inside arm, obviously, but it shouldn't be completely straight unless you have really short arms. You never want to push the bike away but rather use your inside arm to pull the inside bar to upright the bike on corner exit, but I think at this point you should only be concentrating on body position.
In my continuing quest to perfect my body position I came up with a few references to make sure I'm doing it well:
1) Turn your hips towards the turn. If you don't you will end up "crossed up" (upper and lower body going opposite directions) making you work harder to turn and more difficult to get your inside knee out. So turn your hips in to the turn and slide your inside butt cheek off the seat so that the edge of the seat is at your crack.
2) Use the inside leg and outside knee on the tank to hold yourself just slightly off the seat. This accomplishes two things; 1) your legs absorb road imperfections so the suspension works a little less and 2) you are holding yourself up with the lower half of the body leaving your arms loose on the bars so that you do not put unwanted inputs on the bars. Your inside toes should be on the end point of the peg and the knee should be at about a 45 degree angle to the bike. Also don't push your knee in to the ground, (although that is a good way to try to save a low side) rather touch the ground lightly so you feel your lean angle.
3) I try to use the tank as a reference for my upper body. Basically I try to get the center of my chest on the edge/corner of the tank (the part where it goes from horizontal to vertical) and bring my arm and shoulder down further than feels normal so the my head follows them in to the right position. This part takes practice to get right and will feel unnatural so you will have to force yourself to do it and almost do it in an exaggerated way at first.
So what is the point of all this? It is to get your center of gravity lower and to the inside so that the weight of your body leads the bike through a turn and you don't have to lean the bike as much. Less lean angle means more tire surface which is safer and allows you to use more throttle as well. And if you do need more lean angle it is there for you to use (safety).
Do not take only my advice however.
I study tons and tons of pics of pro racers, watch countless youtube vids of pros and riding instructors as well. Read or watch as many pro-rider interviews as possible because they sometimes give away riding techniques. If I want to practice something I go sit on the bike in the garage and do it. I also do a lot of visualization; laying in bed when I can't sleep I will picture myself on the bike at the track and how it feels to go around properly. If you want to get really crazy try lucid dreaming (where you are in control of what you're doing) and ride a bike around the track as you control what you do, I did this last night coincidentally and finally figured out and felt what the "knee to knee" technique is.
All of these studying techniques have improved my riding position immensely in the last 5 months. I can say I went from a 2 to a 7 on a scale of 1-10 with only 1 weekend at the track per month from Feb to May. I have a broken collar bone so I haven't ridden in the last 1.5 months but using the above mentioned techniques I know I will be VERY close to the body position that I am shooting for when I do return in September.