I avoid the bottom of a drainage if i can, usually tucked in some trees. I usually camp around 10K, but on occasion have camped as high as 12K (which is much colder).
As far as how far away from elk ? I've had elk come within a couple hundred yards of my camp and be there all night, fighting, bugling, mewing and what not. I try to not be on top of them, but in the area I hunt most often ... if elk are there .. they might be everywhere and barely outside your camp.
I don't hang food very often. I have a few times, and might if I am leaving it for an extended time. I sometimes carry my food with me.
