Tone arm holes do not line up - best way to attach TT?

The arm is to long. If you have to move it to the right.. Nothing more nothing less. 9" arm, you'll be fine OR call the factory and tell them you're using a 12" arm and they will (hopefully) have a pedestal you can drop in place.

If not 9-10" model tonearm...

Regards..

Oldhvy, The OP says he has achieved the proper pivot to spindle distance of 296mm.  If so, why do you say it's too long? However, one explanation for his problems is a misunderstanding of the meaning of "pivot to spindle" or a mis-measurement of the distance or an improper template (but the OP says he is using the correct template).  This is why I asked about the definition of "P2P".  The other possibility is that he has mistaken pivot to spindle distance for pivot to stylus tip distance. This would result in a mounting error of about 15mm (typically) in P2S and could account for the weird results.

They say a picture is worth a thousand words. In this case I'd say more like ten thousand.

I cannot post a pic, right? 

@mcmanus,

Are you sure you have a 12" arm???  A quick verification it to measure from the tonearm pivot to the end of the headshell - it should be very close to 12".  The next available size from Reed Reed 3P - Reed tonearms is a 10.5" - this arm is about 2" difference.  One item to be careful is that there is a difference between Mounting distance (which is likely what the template shows) and the Pivot to spindle distance which I addressed above.