No, if you do that, you increase the possibility of having the lance go out. it should be attached like the driver, to rotate with the driver, so it is less effected by the wing. It will also provide a much clear and thicker ring of fire.
Attaching it toward the crowd will provide a much thiner circle of fire and increase the chance of the lance blowing out. It can and is being done for certain effects, but I think for what you are trying to do, you will be better of with the first option.
Just browsed through some of my libraries. The pictures are of very low resolution, but I hope it explains the colour pot orientation. In this case, the short tube contains the pot. I can?t find a video for this, but I?ll keep looking.
Wheel2 is probably the best to see a close up of the fusing.
One thing I would like to note about your wheel ? it?s too short. The whole video was 18 seconds. The little wheel in the picture below burn for 18 seconds and produce very good effect. I always suggest starting with two-driver wheels and get them well timed before moving on to larger wheels. Larger wheels should move slowly ? the effect being more majestic in size then fast in movement.
Wheel First Image Wheel Second Image Wheel Third Image