[MC5C]

I'm sorry I didn't reply to your earlier post - the rule of thumb is the straight edge should rest on the frets and be 1" over the top of the guitar at the bridge location. When you get strung up, the string height would then be 1 1/8" over the top with 1/16" action height at the 12th fret. That's what my Hofner Senator is set to, and it creates a decent, not excessive break angle at the bridge. Of course it also depends how low you set the neck into the body, and other things as well. If you get creative you'll be able to blend the colour of the insert with stain of some sort. Good job getting it done! Also, Hofner doesn't always do this but some others do - a special inlay is common between the 14th and 15th fret. Customizers put a customer name there, etc. Kind of a distraction in your case, draw the eye away from the colour mismatch.