Originally posted by mc9mm
Well if you do the "inside" picking,
isnt that going the wrong way?
say you've picked the D string and are going for
the G string, then you have to go over the
D string, avoid it, and then pick the G.

mc9mm, I don't think the skip is a problem.
And if it were, you'd have the same prob. trying to play outside: coming from d, you have to skip the g, and then come back to pick it.
If you play alternating, you're already using both inside and outside playing. Bet you never noticed there could be a problem.

To answer your question: I always use the sharp edge of the pick. The thing to try is not to dig in too deep between the strings. Using the rounded edge will prevent you from digging in too deep, because the edge will catch the string sooner. But it eats your tone.

There is a great tool for practicing the right 'picking depth'. It's called the Stylus Pick. Check it out on http://www.styluspick.com But don't get carried away with the hype they make. The right picking depth is just one element of playing, it's nothing without two-hand-coordination.