That helps a ton
1) you mentioned chainette fringe: sure, it comes in a variety of lengths and you might be able to get a neat effect by layering different lengths together.
2) Chainette comes sewn together at the bottom, this is so you don't loose you mind while sewing it to your garment. The thread at the bottom is just a looped thing that holds it together temporarily and comes off like the thread pull at the top of a bag of dog food. DO NOT loosen your fringe threads before the stuff is sewn onto your garment!
3) you said mid-calf in you post... was that a typo? it looks mid thigh to me.
4) the longer the fringe the more easily it tangles. depending on how much you want on your dress, you might want to sew it to some velcro & use that method to put it on your dress. Washing garments with fringe on them is a SERIOUS p.i.t.a.
5) I would do a slightly angled hem on that outfit, just to give it some jazz. an angled hem really emphasizes fringe nicely.