Update:
Just went to the new Bridgestone 'i' Select in Ellenbrook to sort out this balancing issue. Stickons this time
Well I came away with a wealth of information.
The new machine he used shows where the tyre needs to be balanced exactly (inside part of rim well) and where the actual rim needs to be balanced (outside part of rim well). Wheel weights DO need to be placed in an exact position.
The machine he has can also balance the wheel spoke by spoke so you don't see any wheel weights as they are hidden behind the spokes of the wheels instead of the wheel well. This process takes about 30mins.
He also said as a general rule bang on weights should only be used on steel wheels. "Static balancing" which most older style balancing machines use.