Watch the The Kitchen Sink online guitar lesson by Fareed Haque from Jazz Rock Workshop
The topic of fast picking should probably be its own course, but here's the short version. The best way to get faster picking is to be a social outcast. Force yourself to sit at home alone and practice scales for hours. Stop bathing and brushing your teeth. Say "huh?" every time someone asks you a question. Seriously. Play scales up and down for hours.
On a mechanical side, picking is a three-step process. Since strings are all in a flat plane, one has to get in between the strings to pick them. You have to go down (towards the guitar), through the string, then up (away from the guitar), making a "U." It really does not matter how you hold the pick, you will still have the same motion.
Personally, I generally rest my wrist on the bridge for a clear even sound. But every picking position has its "feel" along with advantages and disadvantages. Try out many. The key is practicing slowly with really big movements to train the muscles.
Those who tell you "minimum motion" is the way to go are simply wrong. Minimum motion will eventually become a habit in everything. Muscles should be conditioned to the correct and complete movements in all areas. Minimum motion is also a way of injuring yourself. Try minimum motion by staying in bed for a week and see how your back aches. Moving is healthy. Don't be afraid to move with conviction and joy!
Technical Gear Tip - Envelope Filters. I've tried them all. They are all cool, but at the end of the day I always end up back to the old DOD envelope filter. It sound great, and breaks down about every ten gigs, I have a box of say 20 of them. I take one out before a gig, shake it vigorously and hope it works. Yes, this is a shout out to DOD to make a sturdier product.