Troy,
As you may be able to tell by the pic, the knife stays stationary and the ferro rod gets drawn back to create the spark. It concentrates the spark better that way. If you're still getting light sparking activity, try some other striker materials. Some of the best, IMHO:
Opinel knife spine,
Victorinox Soldier's awl,
Hacksaw / jigsaw blade spine,
BRKT Mikro spine,
Carbon Steel Erikkson Mora #1260 spine.
The AG Russell Field Knife i used in the pic is a little pricey to be using for a striker. <img src="/images/graemlins/blush.gif" alt="" />
Good luck!
M <img src="/images/graemlins/wink.gif" alt="" />