Running it prior to the comp avoids the aforementioned pump-a-mania. So you get transparent leveling AND the character from the compressor, then you proceed to automate the movement back in normally as you would via your DAW channel fader/automation strip.
Yeah this would be the way to do it. I have only used it on one song, but I don't have that much experience with it yet. I don't actually have the license for it yet (I bought it from eBay), so I am using the demo license .
I have been using it before everything else in the vocal effects line. I wanted it before the compression as all I was able to achieve with the compressor was lots of slamming and then normal sounds. So...I tried to have less compression in order to make it sound less squished but still level. It worked alright but I am gonna have to take more time to learn how to use it (properly).
EDIT: Waves do actually say somewhere (I think it was in the manual) to put Vocal Rider AFTER everything in your effects chain - but I saw this as pretty stupid if you are using effects like delay and reverb.