Well guys, I finally got it right. It was in no way the rest's fault. It was due to some mysterious force held on me by the bow gods.
In all seriousness, I finally think I got it. For starters, I was mounting the rest way too low. The prongs were hitting the shelf, but weren't getting far enough down. All I needed was about 1/8 up to get the prongs to lay down flatter on the shelf. I had to move my nock point up. Interestingly enough, I'm at 1/8" above square and that got me perfect holes in paper from 6 to 12 feet.
Afterwards, once everything was set, I tied a knot in the string tight against the cable, burned the string till it touched the knot and mushroomed it. Because I'm still nervous about the rope slipping. I served the cable under the string as well cinching it up against where the string goes through the cable.
I still have a little tag on the end that goes through the rest, but I"m kind of waiting to see what happens next.
I'm still working on silencing it more, its still a little too noisy for my taste, but all in all, I think I like this rest. Solid and simple.
Thanks for everyone's help and input.
Here are a couple pictures of my problem child.