Grubbyjeans, I'd have to say the photo showing the plumb bob pointing at 3" back from the wing leading edge is considerably too far back. You need to either get some weight out of the tail or add it to the nose. Lead ballast on the firewall if you must, but first try moving your battery as far forward as you can get it. Since you have a straight (not tapered) wing, you can just take somewhere between 25-30% of the chord back from the leading edge and use that to set up. If you can get 30% just by moving the battery or other components forward, I'd settle for that for test flying. If you're more forward than 25% back from leading edge, that will be pretty noseheavy, and will take a lot of elevator to keep it from diving. There are plenty of CG calculator web pages, just google for them. I'd give you a few good links, but I'm on a new computer, don't have the bookmarks handy.

As far as proper use of the Vanessa method, what your photo shows is just fine. Your rig works, now you just have to shift weight in the model to get the pointer in the 25-30% range back from wing leading edge.