Hi Neil,

Kevin Downey (president, Innovex Golf Company www.innovexgolf.com) advises the same thing - lining up your grounded driver with the toe at the ball. IIRC, the theory becomes if you then lift your driver straight up (ie where it will make contact in the swing) you'll now find that the ball and the middle of the clubface line up.

Therefore, if you're hovering your club, I'd say line it up where you want impact to occur.