Lifting by the scruff is an outdated way to lift a bunny. In the old days it was done because it was the easiest way to get to a rabbit way in the back of the cage and it seemed harmless enough. Newer findings show that it is actual a little painful to a rabbit and can even cause injury/dislocation of the shoulder. Old school people still sometimes stick to this form of picking up a rabbit by saying that as long as you support the bottom with your other hand your fine. I just avoid the scruff entirely.
The biggest piece of advice I can give you in picking up your bunny (and in doing ANYTHING interactive with it) is confidence confidence confidence. A rabbit can tell when your nervous, unsure, or rock solid steady. If you try picking up your rabbit and flinch every time he/she squirms, it only shows him your uncomfortable and in turn will make him nervous. If you are steady and sure they wil just snuggle in and go for the ride, liking it or not. The more times you pick them up unsteady, the more nervous they will be in the next pick up. My wife can't help flinching and in turn some of the rabbits squirm alot for her when she picks them up. I on the other hand havn't reacted to it once (I have been picking up rabbits since before kindergarten) and they will not squirm for me at all.
As for how I pick them up, depends on the rabbit size. The dwarf breeds are small enough for me to scoop them up one hand under the chest into a craddle postion mid body using both hands. a larger rabbit, I will use one hand under the chest and one hand under the butt and into the same cradle position. Some rabbits like being in the baby burping position so they can see over your shoulder, but this spooks some rabbits and causes them to squirm. A spooked rabbit would rather be in the cradle position and will then most likely stick its head into your elbow or arm pit to "hide".
James