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Consequently, which way do you hang drywall on a ceiling?
Installation starts in one corner of the ceiling with the length of the drywall panels running perpendicular to the direction of the ceiling joists. If the room is wider than the length of the panels, measure and cut additional panels so the panels meet on the center of a joist.
Herein, does it matter which way you hang drywall?
On commercial jobs, fire codes often require seams to fall on the entire length of the framing, so the drywall must be hung vertically. However, on residential jobs, the drywall on the walls is typically hung horizontally. For walls nine feet high or shorter, hanging the drywall horizontally has a number of benefits.
Drywall should definitely not touch concrete as moisture will wick (ie flow up the surface as in a candle/lamp wick) into the drywall and encourage mold growth. 3/8" should be sufficient - your prop up plan is not only appropriate, but a common technique used by drywallers.