@chrisrice - I have heard nit-picky (describing a person) more often than nit-picking, but you are using the word correctly. This idea has a negative meaning.
It means looking for small or unimportant errors or faults, especially in order to criticize unnecessarily.
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Ahh, I might be using the word somewhat wrong, since I see it as a positive trait of @savvyplayer, but one that makes people uncomfortable.
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Nit-picky is less focused on the person who might feel uncomfortable and more on the person who is criticizing.
If someone tells you your pants are unzipped, I do not see that are criticism.
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