Mick,
Well the wing mounts DO give the right amount of dihedral but the problem is that the wings can flex too easily so the wings have a tendency to "droop". Most people attach a thread from each wing tip and bring it to a central "mast" inthe middle to just hold the wings up.
If you haven't already found it then
http://www.nyblimp.com/litestick.htm is an INVALUABLE resource for anyone building/flying Lite/Picosticks
Cliff