I hate my pouncer as well but I do love the chalk. I was watching a program with Marilyn Badger and she has a wonderful tip for using the chalk powder.
Get the super cheap foam brushes. Dip the brush into the powder and sweep across your stencil. Lays down a beautiful chalk line. Once your stencil is done LIGHTLY spray hair spray or adhesive over the chalk lines to "fix" to your fabric.
I use it on my machine quilts and it works everytime. If your chalk starts "bouncing" just give a VERY LIGHT MIST of water and that should re activate your hair spray or adhesive and calm down the dust.