Acrobats

So, lately I have been dealing with twiddling.
What is twiddling? A baby grabbing your nose, chin, cheek, pinching you, while nursing. She also likes to nurse in different positions like upside down or standing up. I'm not joking! Sometimes she actually stands up while she is nursing!
While most of the time this is ok, sometimes funny, there are times when she scratches and bites. Pinching doesn't feel too good either.
Apparently, according to "kelly" at http://www.kellymom.com/bf/older-baby/nursing-manners.html
this behavior is completely normal. That your baby is exploring all the things she can do while nursing. She calls it "twiddling" and "acrobatic nursing".
She also says that, although the behavior is normal, it doesn't mean you can not teach your child otherwise or distract her with something else.
One idea that I really liked was putting a "nursing necklace" or bright scarf around your neck while nursing. A tough string or necklace for your baby to grab instead of your nose. Grabbing the nose itself isn't so bad, but it always leads to a very sharp scratch down the upper lip or chin.
She also suggests giving your baby a toy or blanket to hold, or to hold your baby's hand.
I, myself, have tried holding her hand and it works for a while but she seems to get very hyper sometimes while she is nursing and holding her hand seems to restrict her somehow, like she has too much energy. She starts waving my hand around like crazy.
"Kelly" also has a lot of great tips for parents of nursing toddlers, ways to explain why acrobatic nursing in public is not a good idea and that "it's hard to nurse when you are wiggly, why don't we go play and get the wiggles out and then we can nurse again?"
One thing I have not found an answer for is outside distractions. When my daughter was brand new, all she wanted to do was nurse. But as she got older, she started to find other things more interesting. Any little noise and she will stop nursing and sit up, whether it's a loud boom on the TV, the phone ringing, or the little boy next door calling for his mother.
Any ideas?