Again, I appologize for not having better/more photos of the previous step. I'll try to add them in the next couple of day. On with the build-along.
The nock hold and nock pen are done. Now, you need to set the dowel in the dowel upright. Slide the dowel through the hole in the upright, slide the washers on the dowel. You'll probably see that it centers 1" from each end to the washers. Estimating the thickness of your carter pen, put a pencil dot on the dowel and drill a hole for the pen thru the center of the dowel. Now slide the dowel back thru the hold with the washed and pen in place. Slide the other washer on the opposite side of the dowel upright and mark it.
NOTE: error close to the washer and use as small of a drill bit as you can for the carter pen to slide through. That way if the hole is to close (the pen won't go through or it's just to tight for the dowel to turn freely, you can use a big drill bit to loosen the tention. Otherwise you'll have to drill another hole or use another washer to fill the gap or both.