the scabbard is tucked under the obi so that the tsuba is one fist away from you, at your center line just below the navel. The sword should be near horizontal.
The hands come to the sword more from underneath than from the side. The left hand is on the scabbard, with thumb at about a 2 o'clock position on the tsuba. This is to hold the sword in when moving, and is also used to break the inirtia when drawing the sword out. The right hand is rolled back (wrist is broken) holding the handle just under the tsuba and pressing the handle down slightly.
The sword is drawn. Think about the butt of the sword being your aiming device, this goes streight at the attacker.As the sword is being drawn, both wrists roll so that the ha is not facing up, but out toward opponent by the time it clears the scabbard.
As the kissaki clears the scabbard the entire sword is lifted to level of strike. The sword travels horizontal to your right and stops with your wrist relaxed, arm at 45*.
The sword is held above head with both hands. The left hand is one fist away from forehead and the kissaki is up. Elbows should be at a relaxed position. In this grip the thumbs should be perpendicular to the blade and most of the gripping is done with thelast three digits.
As the strike begins, extend the sword out farther than you would think. The idea is to put it out far and drag it back accross the body as it comes down.
Roll the wrists as the strike happens, this allows you to stop the sword with no bounce at the end.
Stop the strike with left hand one fist away from centerline just below navel.
from the ending position of the overhead strike, move the sword quickly to right, ending when right arm is at 45*. Left hand comes back flat to your hip. This shuold eventualy be a snapping motion, providing initial resistance with fingers of left hand will help. Sword should stop dead, no waving at end.
Left hand comes to end of scabbard and in position in front of navel. The sword is brought around to the left side, ha facing out. Draw the blade out at 45* to right, starting just above the left hand, but lightly coming to slide up webbing of left hand as the scabbard is drawn back towards hip. As kissaki clears hand and enters the scabbard, reverse directions of both hands so that you are putting the sword in. As sword goes in bring scabbard back toward sword and roll wrists so that you end with ha facing up, the tsuba one fist away just below navel.