champ,
You interpreted it correctly. Don't worry about where the nock is, only where it penetrates the target. Though, I usually find that they sorta "coincide"..for example, if the bareshafts strike the target to the left of the fletched shafts, it looks like the arrow is "nock right" in nature and vice-versa.
Actually, if you were to bareshaft an unmatched arrow at a long distance (say 50-75 yds) it's liable to end up heading off almost at a right angle to your target before it gets there.