Howzit. I had a similar problem with my penn 2000. Basically that pin that u circled is in the right place but it has to fit into the bail mechanism. When u put the bail mechanism back, the loose end of the pin that is turned up fits in a small hole on the inside (of the bail mechanism). The hitch is that you need to get the spring down for everything to fit. Once the pin is in - then tighten the screw so it all stays together. With the pin (that u circled) one end on the spring, one end in the bail mechanism - your reel should be sorted. It is a mission to get all lined up and i shot the spring across my lounge a few times so take care... The big pin on the other side also fits neatly into a groove in the backing of that bail mechanism. They (the pins) kinda work against each other. One locks the reel in normal reeling position, one locks the bail back when casting. Good luck hope u come right!