Hey wheelie,
these are very similar to the tools I use for hollowing. The way I do it is #1, round the tip instead of making a point out of it. It will work more like a scraper and shear the wood instead of poking it.
As for use, when you insert the tool, make sure to rotate the handle so that the cutter is facing down slightly, say at the 8 o'clock position. This introduces less edge to the wood immediately and allows you to find your position. Once you have the tool in contact with the wood and are ready, rotate the handle so that the cutter rises to the 9 o'clock position of just under. Rotate it slowly and you will begin to feel it cutting. Once the cutting action feels sufficient to the heft of cut you want, stay at that position and work from there. Need a heavier cut, rotate closer to 9, need a lighter cut, rotate back towards 6. However, do not rotate the tool higher than the 9 o'clock position, this puts the edge above center and introduces too much to the wood causing catches and snags.
Another thing is to position the tool rest slightly above center so that you have to angle the tool downwards slightly for the cutter to be at center, this will also help against catches.
Last point, make sure to clear out the dust and shavings regularly. They can fill up the hollow form fast and actually bind the tool causing it to spin wildly and possibly out of your hand messing up the opening pretty bad or even blowing the whole form up... DAMHIKT
Check out my primer on turning hollow forms for more info and some diagrams on tool placement:
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The tools look different, but work using the same techniques.