As above, all my peep sights are as far back as possible, leaving just enough room to work the safety. This gives me the most options for aperture size, especially the smaller apertures. Remember, the idea of using a peep sight is to look through it and forget it, concentrating 100% on the front sight, rather than trying to center the front sight in the aperture. For me, this is definitely easier to do with the peep as close to my eye as possible.
Depends on the size of the aperture. Williams has optional twilight apertures that are larger and are meant to be mounted more forward. Standard with the sight would be mounted somewhere just in front of the safety. Larger hole moves sight forward and increases field of view. And allows for shooting in darker conditions and faster target acquisition.My HW30 with the twilight peep.