Did you notice your setting lever has a protruding pin? Normally the spring would go behind the lever doesn't look like there's room? So looks like your spring should have the long part pushing on the protruding pin of the lever the rest of it will go in the recessed area next to it then the plates will go on top and hold everything in place.
Hands should be pressed on lightly. Make sure they do not rub each other and don’t touch the dial. When it comes to casing up the movement make sure the hands are clear of the glass. You do not say if it is a center seconds hand or sub seconds. Sub seconds make sure it is clear of the dial and is not rubbing anywhere on the dial. Have you tried the watch without the second’s hand? If the movement works, you know where to look.