Hi Pink,
I had the same reaction you had when I first tried mindfulness! I felt like I was ready to hyperventilate!
Now, it is my most favorite skill ever. I don't breathe differently than I normally do. I just let the air hit the back of my throat, go in my body and let the tension go when I exhale.
Letting the tension escape through your fingers and toes is a great idea and one that I use.
I asked my T to record a CD with her voice on it putting me thru the PMR and it works great. I actually do a bit better when I'm listening to a crackling fire and just walk myself through it.
My advice would be to try to stay open to it and try it again. I thought it was crapfulness too when I first started using it! BTW, I love that new word and do plan to use it again, that is of course, if I have your copyright permission to do so....

Best,
Okie