Hi wilson,
Thanks so much for the reply!Thats at least some indication that it could be possible to apply inside Quebec, starting on a visitor visa and extending if need be. Regarding french, I have a decent level and would say I am approaching advanced level. I previously lived in Montreal for one year and took extensive French classes with the governments own Scolaire de Montreal. I even have a couple of certificates from them which I am hoping will help my case.
Also I am actively trying to improve my french everyday (my girlfriend is a francophone!

) so I figured if I apply within Quebec I should be in good shape for the interview. Thanks for the advice on the PR application - I haven't thought that far ahead as I'm just focusing on getting the CSQ first.
If anyone else has other advice or experience to add I'd really appreciate it!