are you saying you keep the wick from touching the rim of the hole?
I tried getting it to hover in the center, but it is touching. However, there are only a few points of contact, which I think minimizes the potential for shorts.
I saw this mentioned in AlmightyGod's interview with faceless... said people with persistent top coil hot spots just need to make the wick so that its not tight in the hole... usually this will relieve the top hot spot on its own, as the wick isnt acting like a giant ground post.
Why the coils pop is that you are literally shorting the coil, putting all that voltage through a tiny section of wire. I ohmed out where it popped one time, and I got 0.05 ohms. So 4.12V going through Kanthal A1 at 339.5 watts! This causes it to get so hot that it literally melts! That's assuming absolutely no voltage is getting passed the short... keep in mind these numbers are trivial, as my meter is not very accurate at that low ohmage. However I know its lower than 0.1 as the needle wasn't at 0.1, and wasn't quite at 0... You also have to assume that the wick itself has resistance (when its shorted), so the wattage wont be quite that high, but it does demonstrate just why a coil pops.
I find that a gap isnt necessary, just a wick that isnt tight in the hole. When I started, I was rolling my wicks so they would be tight, because I thought that was how it should be done... but I popped 30 coils in a row, and rolled over 10 wicks before I got a good setup (with a looser wick... or rather tight, dense wick, loosely fit in the wick hole.) Keep in mind the iHybrid is very conductive, so YMMV.
I thought I had gotten them down, as I could build excellent working coils within 10 minutes on both my Chid, and Zenesis... but for some reason I had a lot of difficulty on the iHybrid...