How should I be sitting on the saddle?

Slide back far enough that the inside of your thighs brush the transition area (where the nose of the seat contacts the rear support surface). Your sit bones should rest on the wide rear support surface. You should not have to rest any weight on the nose section of the seat – lower the saddle nose as necessary to remove any pressure so your weight is on the sit bones, solely. The nose is there purely to aid in positioning and control.