I said to cut the batten off flush with the leech. Actually, if you fold the batten pocket back and cut the batten as far inside as possible you really eliminate the hang up
Which brings me to:
3) Again, figure how tight you want the battens and mark them at the leech and mark the point where the grommet is. Remove the batten, cut and file smooth and drill a small hole where you marked the grommet. This hole is just there so you can shove a small screw or nail through to hold the compressed batten in place while you sew the batten pocket shut. Sew the batten pocket shut, remove screw or nail. Finish off with sail-tape as before to help prevent wear.
The hard part is keeping the batten compressed. Remember, patience is a virtue
and you really don't need a lot of compression. You really don't even need battens as evidenced by roller-furling jibs. Jib battens do little to change the shape of the jib in heavy air, but they make the sail shape in light air.