Forget about moving the rest. It has nothing to do with your form. If the bow is tuned with it where it is then leave it alone.
You are still stretched out way too far with the right arm. The bow's draw length is too long. You take a look at the picture and see if you see what I'm saying. From the elbow of the right arm right through the wrist should form a straight line. The knuckle where your right index finger joins the hand should be tuckedright under your ear lobe, right behind the jaw bone.
I'm going to suggest that you log onto
www.archerytalk.com and look up some posts by Nuts&Bolts. Do a search on "shooting form" and see what you find. N&B posts with some very good pictures that might help.