Definately try with your arm at your side. I think having your hand out in front counter-balances you in a way and decreases the effectiveness of the drill. Make sure not to flatten out though, you still want that body roll that puts you on your side with each stroke. I have found that triathletes especially HATE to take their time with a drill and rush through it trying to "do work" You really have to take your time on this drill or you wil either sink or be very tired after a 25.
Good luck!
Good luck!