Thread the rubber washers on the long screws first, the rubber washers kind of act like a lock washer. Then thread the metal washers on the long screws so that they countersink into the bottom hole (you are correct, the holes don't have a countersunk area) on top of the rubber washers. If you put the metal washers on the wrong way, the screws won't be long enough to reach into the bottom of the vise and they are a PIA to get back off and turn them the correct way. Thread one screw at a time through the base and into the vise, snug em down but don't strip the holes in the aluminum vise. The two small screws go through the sides of the vise to clamp on the blade, barely start them until you are ready to insert a blade. Put a small thin piece of cloth / leather / fiber board stiffener between the vise and the blade when tightening or you will mar the blade. The instructions aren't very clear on assembly.
Until I get the edge reprofiled all the way to the tip, I move the stones up and down rather than just away like in the video, its much faster when reprofiling. After I get to the 1000 grit stones, I put a couple pieces of 3000 grit sandpaper over two of the stones and secure them with rubber bands, then use them in the same way as the video shows, up and away. Once that makes a mirror I strop using pink jeweler's buffing rouge. The strop paste that WE sells is too expensive IMO, I bought a half a bar of pink jeweler's rouge for 5 bux at a recent gun show and got enough to last for years. Pink is finer than white. I'm sure the diamond paste is wonderful, but for the price I'll stick with pink rouge. As others have mentioned, get a loupe. I got a lighted one for 8 bux at the same gun show and now I can see exactly what the edge looks like, kind of amazing how rough factory edges are, kind of like mini serrations. These mini serrations feel sharp, but are actually tearing as much as slicing. The shallower the angle (lower number in degrees), the sharper the edge, but the more delicate the edge too. I use 20 degrees for my pocket knives but I like em wicked sharp (pun intended). Practice on a cheap knife, I bought a Case CV Sodbuster Jr to learn on. It's thin hollow grind and carbon steel takes a great edge, noticably sharper than I can achieve with Case SS. Also practiced on some used X-Acto blades and learned what hair whittlin' sharp really means.