Hi,
what size tank do you have? It's generally a good plan to have more than one powerhead. The reason for this is to create some randon turbulence. One powerhead tends to create somewhat of a whirlpool effect which the fish won't enjoy too much. If you've still got the old powerhead, I'd put it back in and aim it to intersect the flow from the new powerhead. This should create some random turbulence where the two meet, stopping or reducing the whirlpool effect. If you don't have the old powerhead still and can't afford to buy a second, i'd try and break the flow of the new powerhead up by directing it at an obstacle, e.g. some liverock. This should help to break the flow up a bit until you can get a second one. As for placement, i'd go for about 3-4" above the substrate. This gives the fish a calmer area above where they can get out of the main flow and should also provide some flow over your substrate to help keep particles suspended in the water column where your filter can remove them.
Hope this helps,
Shark.