I used to use to line the string up on the outside of the riser but when I really began to look at my alignment I needed to move my anchor further back. Now I am aligned but with my anchor (thumb knuckle under my ear) the string is more to the side and cannot be lined up on the riser. At least for me, it didn't really matter, I have a solid 2 point anchor and good alignment.
I guess to answer you second question, I don't really compensate for my non-ability to use string blur, it really wasn't a factor with the way I shoot.