RE: Ouch! Why am I hitting my arm so much!
Are you really a 29" draw??? That is my first question. Did you change anything??? Shooting a loop now vs. off the string before??? Fingers vs. release??? I have more questions than answers, sorry. Are you over-gripping the bow??? Try to keep you hand nice and relaxed, and don't choke the handle. I'm sure there are other suggestions coming.
You mention the loop, I must have browsed over that, and YES, it makes your draw about 1/2" longer, but I wouldn't think that alone would do it. I can and have shot bows up to 31" with a release, just had to cheat a little, but 1/2" shouldn't make that big of a difference.