Using acoustic definitely makes things harder.
With electric, you have the advantage of being able to use compression to even out your sound and give yourself more sustain.

As far as the scrunchy goes, with some practice you can learn to quickly move it on and off the fretboard depending on whether you're using open strings or not. It's just a matter of timing..or writing a solo in such a way as to give yourself time to move it out of the way.

Technique wise, there's so much to cover that I wouldn't know where to start.
I posted about 50 lessons in tapping here:

http://www.guitartricks.com/lesson.php?input=1873
http://www.guitartricks.com/lesson.php?input=1961
http://www.guitartricks.com/lesson.php?input=2059
http://www.guitartricks.com/lesson.php?input=2484

They mostly cover using electric but you may find some information useful.

note: some of the videos are still the older lo-def versions but they'll be getting updated soon.