RE: Clearance Problems with a MZE
The groove in the arm is to center the arrow in the cradle, not to let the fletch go through.
Without looking at your set up I can't really tell you what is happening. Somebody else on here might though, there are some that have lots of experience with this rest and how it reacts to different bows. This rest will not work well on all bows. You have some sort of a timing issue and the rest is not dropping fast enough is my guess.
I have a bowtech Might Might and I can't get the muzzy to work on my bow either.
Paul