It's been a while since I did the torque rods, but you want the the rod to be on the centerline--all hinges and the torque rod have to line up. If you can imagine what would happen if the hinges and the rod were not in line, how they will not bend the same way at the same time, you'll get the idea.
I used a tool that costs a couple of bucks that does a nice job of finding this centerline.
http://www2.towerhobbies.com/cgi-bin...?&I=LXK262&P=7
So when you put the torque rod in the channel, if the rod isn't in center, you have to deepen the channel a bit. You may want to glue some sand paper on the side of stick and go slow. Sand a bit, then recheck, so you don't go too deep. Take your time. I know what you mean about foam. If you're used to sanding wood, there is something strange about sanding foam.....
I've heard of three ways people put the torque rods into the ailersons. One is stock, though I've heard that they will eventually (how long eventually is, I don't know) will loosen and you'll get a bit of slop because the foam compressed where the torque rod moves in the aileron.
Some have used an extra part of the pushrod guide to put the torque rod in--drill out a slightly larger hole for the pushrod guide.
I used some small diameter fuel line. I drilled a larger hole in the center of the aileron and glued in a section a little longer than the length of the arm. The inside diameter of the tubing I bought is the same diameter as the rod and once the glue is dry, a sharp knife will cut the tubing flush with the surface of the aileron. I glued mine in with the glue supplied with the kit.
With the drilling, go slow, moving up a drill size at a time until the tubing fits. Do your best to get the hole centered and positioned as accurately as possible.
I have about 30 hours on my Estarter, and this mod has worked well. When you want to put the torque rod in, wet the torque rod first so it will slide easier. If all the cuts for your hinges are in line, it should slide in fairly easy when you get to that step.