1. The grippers and strap should be placed 1" to 1 1/2" from either end of the main 10" strip. Why I say either end is because right handed people might prefer to hold the Wench in their right hand when putting it on and left handed people the opposite. Right handed people should place the grippers 1" to 1 1/2" from the left end - Left-handed people should place them on the right end.
You have the grippers and strap centered in your pics. (ambidextrous?)
It's a versatile device, so if you need to move those grippers more or less than the measurements that I've given you can. And you probably will - no two flaccid sizes are exactly alike. I've only given a ball park number.
2. SWM is correct. The main velcro band as well as the grippers are (according to the directions) supposed to be 2" in depth. Yours appears to be 1". Why I prefer that people begin with the 2" depth is because two inches gives people plenty of room to trim the Wench down in size should they feel the need (a hell of a lot easier than adding on )
I often recommend that people trim the 2" dimensions down when they are experiencing slippage problems or they are interested in using the Wench as an ADS. You can also resolve some of these issues by trimming the 10" length down a little. I use a variety of Wench sizes for various things. In fact, the one I use as an ADS has dimensions of 6" Lgth x 1 1/2" depth. With this I am able to use a releasable wire-tie to perfection with the Wench Peg-Leg ADS.
This is essentially what you have here in these pics: A scaled down Wench that is still very usable. But I do recommend making one specific to the original directions. It's the best place to start from.
Try it out. The Wench generally has a very small learning curve compared with other hangers. Attach it according to the instructions and slap on a small amount of weight to get a feel for it. Make time for a few things: Your wrap arrangement, gripper placement, clamp setting, etc. Supra, you're a vet. You know how this stuff ultimately amounts to what feels right to the individual. There are many people using the Wench without wrap , but I never do. Just doesn't feel right to me. So give it a shot. Experiment a bit.