My set up is similar to that suggested by David Tyler. The deck sheet blocks are attached to a horse about 400m above the transom. There is an athwartships alloy tube 400mm above that to stop the sheet flicking up and strangling the windvane. This used to mostly happen when I was tacking and the boat was pitching a bit, with the wind blowing the slackened sheet aft.
I have a solid roof over the front half of the cockpit, and the sheet slides over this when gybing, keeping it clear of everything else, as long as it doesn't droop down and get under the aft corner of the roof, forcing me to heave it over by hand. To stop that, last year I fitted alloy tubes that run from the aft corners of the cockpit roof back to the dinghy davits, over which the sheet lies. Now I can gybe with a slack sheet, though I only do this in lighter winds. In stronger winds, I adjust the windvane for the new course, push the tiller with one foot to speed up the gybe, then heave mightily on the sheet tail as it slackens, to take as much slack out of it as possible as it comes across, leaving the sheet cleated and flaking the tail down on the cockpit seat beside me. It works, but I am a bit puffed afterwards!
I think I could now gybe with a slack sheet even in strong winds, unless the sail is reefed. When I reef, I do not tie the battens down at the leach, or have a fan-up preventer fitted (planning to work on that again this year), which means there is a risk of a fan-up when gybing with a slack sheet. Hauling in on the slack reduces this risk. One thing we are all agreed on, if there is anything the sheet can grab it will, it is like a naughty monkey!
As an aside: for short-handed passagemaking, where you are likely to be sleeping below with the boat self-steering, tying the batten ends down when reefing, or having a fan up preventer, is highly desirable, as there is always the chance of an accidental gybe, which could cause a nasty fan-up.