I'm on frame 310.  My review workflow is as follows:

1) use failed cards list to test whether I can recall how to write those failed kanji
2) mark correctly-answered failed kanji as "learned"
3) review expired cards (any failed kanji then get added to the failed deck)
4) add cards from previous study session (usually 24 hours ago)
5) test newly added cards (any failed kanji then get added to the failed deck)
6) briefly look at each story for all failed kanji and try to visualize/edit/replace story
7) begin new study session for about 30-40 kanji
8) finish
9) 24 hours later, begin at 1) again

With this, I'd say that I get about 90-100% accuracy in Step 1.  I also have about 80-90% accuracy in Steps 3 and 5.  However, this means that my failed kanji are getting put back into circulation ~24 hours after having been failed.  I've found that for some kanji, this has really helped me remember certain stories.  Despite this, however, I have some misgivings about how mentally efficient (for my long-term memory) it is to be doing this.  Should I be waiting longer to put failed card back into the deck?  What do other people do?  Just curious.