Two things - one; In your picture the barrel isn't seated deep enough, it needs to be seated downward in its final resting place, and setting level, before you can determine where that bolster and pan will go in relation to the touch hole. Two - clean off that barrel flat (light sandpaper) and mark where the tough hole will go, a thin point black marker will do, spray it with hairspray, or clear lacquer, to keep it from smearing. Once you've done that proceed to position your lock.
Regards the upper edge of the wood and bolster; the tops should be level with one another, BUT, at this point you may have some wood to remove off the upper edge (I don't know). You determine if you still have wood to remove by seating the barrel and observing where the wood is on your flat, if the barrel is all the way down and the wood goes up past halfway on the flat then take some wood off all along the upper stock until you have half the flat showing all the way to the muzzle.
1. Clean barrel flat - mark where the touch hole will be.
2. Seat the barrel all the way - is the wood showing half the flat, or perhaps a bit more? Good.
3. Using the touch hole location as the focal point play with the lock until it is orientated on the stock to your satisfaction.
- Be sure you have the nose of the lock positioned so that your front lock bolt goes through the web between the barrel and ramrod - if there will be no front lock bolt then you have a bit of freedom orienting the lock as I remark below.
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pay attention to where your sear bar is as that will dictate where the triggers go - this is important.
- The tail of the lock should be fairly centered on the wrist, slightly higher is better than lower - fiddle with it and get it as close as you can.
After that you know where that bolster goes and can inlet it.
4. Take a break.
dave