Dear John,

Yes this is a liturgical abuse, even if it is hard to understand why.  Peace is of course one of the most important parts of Catholicism, but at Communion time, the focus must be on the Eucharist.  Catholics prepare themselves to receive the Eucharist by exchanging the sign of peace since a person is not prepared to receive the Lord if he cannot be at peace with his brother.  In my opinion at least the primary focus at the sign of peace is not exclusively to build the community, but rather to prepare to receive the Lord.  Therefore it is not necessary for the priest to leave the immediate area to exchange the sign of peace.  Secondly, it is unnecessary for the priest to leave the sanctuary to exchange the sign with the people since he has just done it.  "The peace of the Lord be with you always"  "and also with you".

Lifting of the hands is not called for at all for the people at Mass, also the "Praise and Worship" style of prayer which I believe consists of guitar, drums and popular forms of music.  Remember that it is Rome that regulates the Sacred Liturgy, not local customs that have popped up over the years.  The beauty and point of the Liturgy is that it belongs to the Church, the entire universal Church.  The Catholic Liturgy is not made up of many local groups but rather one authority united under Rome.  Local customs can be permitted with permission from Rome.  I'm not saying that Praise and Worship and raising hands is wrong, rather what I'm saying is that it is not a part of the liturgical prayer of the Church.

Let me know if I can be of further help,

Mr. Slavek