Edit: Also It is possible for the hands and fingers to line up exactly with the model, if you use all three tool. Click the 1st part of the finger link( the one closest to the hand part) And then use the tools.
does everypart of the biped have to be covered by mesh? My hands are stickin out a little...will this show in my final render? or will the biped blend in with the mesh?
Select all the bones then right click and choose "Properties"
In the Properties window, uncheck the box on the right that says "Renderable" - This will make it so they bones do not show up in the render.