Staley advocates a 'squat down between your legs' approach, which has worked the best for me. Stance slightly wider than shoulder width, toes pointed slightly out, knees tracking over second toe (give or take, it's not like you can measure this every rep to make sure it's right where you want it, but I digress). Front squats are knee dominant, so break at the knees and allow them to spread out as much as your feet are pointed on the way down and back up - keeping them above your knees of course.
Had to demonstrate that for the wife for her to understand what I was saying, she was trying to push her knees out past her feet to either side. This helps keep you upright, which in turn helps keep your upper back upright on the way back up, especially when you start pushing heavier weights.
Never heard the 'knees in, then out' thing. Sounds painful.