keef321, if your sifu says you must keep your eyes open to do 7* chi kung, then keep 'em open. There's a reason for it. (If your sifu wasn't the one who told you that, then go up and ask him which is better.)
IMO it's OK to use those meditation techniques. It can be hard to clear the mind especially after a busy/stressful day. Count and concentrate on the breath when you start chi gung practice, and after 10-20 minutes as you warm up your body & mind will get more in sync and you'll find that you don't have to concentrate as hard on breathing.
Frame of mind should be relatively calm and alert. If you're very upset/angry, (i.e. can only think about one troublesome thing that happened that day), don't do chi kung. Don't do it if you're extremely tired, either.
There is a great streak of violence in every human being. If it is not channeled and understood, it will break out in war or in madness. ~Sam Peckinpah