That second try is much better.
I would suggest that you put the two knuckles on the lid, because you need to put a curve in the lid and finial. You will need to make a wood former to do the curve. The curve should follow the curve of the stock but be a little tighter. In other words, it should curve a little more. This adds rigidity to the lid.
You should form the hinge, form the curve; and THEN, cut the knuckles. The knuckles should be cut straight up and down; in line with the motion of the l lid and NOT perpendicular to the hinge.
The knuckles should be tight, but that is not what makes a tight hinge. A tight pin through the knuckles makes a tight hinge. As already suggested, you should use 1/16" music wire for the hinge. You will have to bend it to match the curve in the hinge, and have to worry it through the knuckles. You may have to take a 1/16" drill to the knuckles but that should be a last resort. It will just loosen the hinge. I often takes me an hour to get a pin worked through the hinge. I taper one end of my pin and just keep bending it and working it in. If you formed the hinge around a 1/16" music wire, then the pin should go eventually.
Once the hinge is together, then you can file the hinge knuckles even with each other so that you have one smooth hinge. A nice finishing touch is to cut the hinge pin about a half a knuckle short on either end and then pein the hinge closed at the ends.