Tone arm holes do not line up - best way to attach TT?

Miller carbon likes to trivialize many things that many people obsess over. I understand where he is coming from. On the other hand a 12 inch tonearm is only one option, and there are pros and cons. Anyway, no one here is saying that a 12 inch tonearm is per se a bad idea. We are just trying to find out why the OP is having problems with his new tonearm.

To sum up, the following questions are up for grabs:(1) The definition of "P2P", a term mentioned by the OP in passing.  Which would possibly reveal that mcmanus is measuring pivot to stylus tip, not P2S.
(2) The actual effective length of the tonearm.(3) The (remote) possibility that the wiring is dragging on the arm wand, or I'll add another, that the pivot bearings are too tight, preventing free movement of the arm wand (although that would probably not result in the cartridge skating all the way across the LP surface).(4) Diamond tip has fallen off the cantilever; it happens.

Oldhvy, The OP says he has achieved the proper pivot to spindle distance of 296mm.  If so, why do you say it's too long? However, one explanation for his problems is a misunderstanding of the meaning of "pivot to spindle" or a mis-measurement of the distance or an improper template (but the OP says he is using the correct template).  This is why I asked about the definition of "P2P".  The other possibility is that he has mistaken pivot to spindle distance for pivot to stylus tip distance. This would result in a mounting error of about 15mm (typically) in P2S and could account for the weird results.

What is P2P definition?

You wrote, "When I put the center pivot of the arm at the specified distance, 296mm..."  Are you saying that you can set up the tonearm such that the distance from the pivot point to the axis of the spindle is exactly or very nearly exactly 296mm and that 296mm is the recommended distance per Reed? (This is in contrast to Miller Carbon's major assumption, which was that you are off by a "few inches".)  It's very important to clarify this issue.  Anyway, IF you have been able to achieve the specified 296mm for P2S (shorthand for "pivot to spindle"), that is good.  Having done that, what are you using for a template to guide you in setting up the offset angle of the cartridge?  Be sure you are using a protractor that is appropriate for the P2S distance of 296mm.  If you are using a garden variety template, it may be designed for shorter tonearms, which would result in the problem you note, that you cannot achieve the proper angle for the cartridge.  In reality, if you have the P2S set correctly, that should result in close to proper stylus overhang, and you should not need to do much twisting of the cartridge body at all, with respect to the Reed headshell, to get you into good alignment.

Something is "off", if you set the VTF to 2 g (for what cartridge?) and the tonearm flies across the grooves toward the spindle. Any VTF greater than 2g is very unusual (high) for most of the commonly used MC cartridges. As Antinn says, check anti-skate. Have you applied any anti-skate force at all? But even with zero AS, I would be surprised that the stylus cannot sit down in the groove well enough to avoid the issue you describe. Your best bet might be to consult a local friend who can actually visit your home and help you figure it out. Or the dealer that sold you all that expensive stuff. Don’t give up on it.
EDIT.  It just occurred to me that you also ought to check the routing of the wires that exit the arm wand at the rear and eventually provide outputs to the phono stage.  If the wires at the arm wand exit hole are twisted or torqued in some way, they could be responsible for an excessive side force that would be pulling your tonearm inward toward the spindle.  But Reed tonearms are well designed to avoid that issue, so this is a shot in the dark.

I read the thread, and I am still a bit puzzled as to the nature of your problem, because the Reed tonearms do not require drilling a large diameter hole to accommodate a vertical shaft.  They are all top-mounted, so far as I know. Which is to say they have a flat base that sits entirely on top of the tonearm mount board.  So, it seems to me that if your tonearm mounting board permits the greater P2S distance of a 12-inch tonearm vs your previous shorter tonearms, then you cannot have a problem, save the problem of drilling three small screw holes for the base of the Reed in a new location.  On the other hand, if the mounting board does not have space far enough away from the spindle to mount a 12-incher allowing for proper P2S, then you have a bigger problem than just the fact that the existing holes are in the wrong place; you would need somehow to extend the mounting board in that direction.  Which is it? Or what am I missing?