I have to apologize. Your post made me laugh so hard and I know it is not funny to you. It sounds like everything that could go wrong, DID!
First of all, leave the frame for now. For a small piece you don't need it.
Second, any knot is fine as long as it will snap under the top and be hidden in the batting. I personally like the quilters knot and use it all the time for everything.
Third, just do one stitch at a time. It is just a simple running stitch. When you can do one stitch well, without problems, and you are used to using the thimble, then try taking 2 stitches, etc. I couldn't rock my stitches at first either.
Remember, there are no quilt police, so whatever works for you is OK.