Great! Looks like you got it. Try hooking the chain to the hole that makes the chain as close to vertical as possible. A little lean in the chain is no problem, and, of course, the further out the chain is on the bar from the handle, the further up it is going to be pulled when you push the flush lever. When the lever is at rest, the chain should not be holding the flapper off the seat. A half a link or up to a full link of slack should be enough to ensure that but still jerk the flapper up high enough to float when you push the handle.
A little tinkering and you should have it fine. A quick funny story: put a new flapper in a lowboy toilet that had a pushbutton on the lid. The button pushed against one side of what was effectively a plastic trip lever inside the toilet. In other words, there was basically a normal trip lever mounted inside which was activated by the button pushing against it. I set the flapper up perfectly, tested it a few times by pushing on the internal trip lever with the cover off. All set! Then I put the cover back on. Of course, I had neglected to realize that when you put the cover back on, it pushed the trip lever down a bit; the "rest" position of the lever wasn't the same with the cover off and on. So the toilet immediately started running. The cause wasn't instantly apparent to me, so I had to tinker with it until I went "Duh." Then I had to figure out exactly how much the cover pushed on the lever so I could set the chain. Took some tinkering, but that's the fun of these kind of repairs: you try it, you try it again, you try it again and voila! -- perfect.
Good luck and let us know how it goes.