Here's my two cents... First off, I thought you were barefoot Jake, why are you wearing slippers!?!?
To me it seems that there are some obvious thick spots and thin spots. That would leave me to believe that you will have flat spots and hinges once you get it bending more. try running your fingers along the limb feeling for places where it gets think and then take a little wood off there until it feels like a smooth, even transition from fade to tip. That will get you started off on the right foot.
I cut my nocks 1" in but like seminolewind said, they can be further out toward the tip if you need to squeeze out every last inch of working limb it will just limit your options for shaping your tips.
My other advice is to get some synthetic string material for now. I use and recommend fast flight. I would get some successful bows under your belt and get some shooting in before I tackled natural strings. Consider it another skillset and another project to take on a little down the road. Good luck with your bow and keep us updated.