I think the cable guide should go all the way up to the hole?
Not necessary you can simply use a sleeve to prevent the cable from rubbing against the frame, like this;
Pop into your LBS as they're likely to have some spare from shop floor bicycles.
lastly, what derailleur was it?
Hmm, thanks Ed. That's how it was done before and it lasted about 4000 miles so can't have been the worst way to do it.
I can't figure out why it's not moving now though...
What derailleur was it? did the cable move freely when you hold it with your hand and shift?
@Fox started
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Not necessary you can simply use a sleeve to prevent the cable from rubbing against the frame, like this;
Pop into your LBS as they're likely to have some spare from shop floor bicycles.
lastly, what derailleur was it?