[labatt]

It just looks like a couple of your lines are routed incorrectly. When reefing, there are two parts of the sail that need to be held down - the tack and the clew. The tack is held down by the hooks on the front of the boom. The clew lines need to be re-run. Run them from the padeye on the boom (labeled "lines are spliced here" on the above diagram) up through the first grommet on the leech of the sail, back down through the turning block and forward to the cleat. To reef, drop your main so you can get the tack cringle (grommet) in the hook, then raise your main halyard a little bit to tension it, and then pull in the line at the back end running through the leech end of the sail. Then use the ties/pieces of line to tidy up the sail and keep it from flapping. I'm sure someone else will step up and draw you a picture. With regards to tightening the outhaul - that's not necessary as the line going through the turning block will end up acting as an outhaul too.