Cindylatta,
as Pablo said I'd remove the neck and make sure there's no drill shavings in the neck pocket and give it a good clean. Also make sure there's nothing protruding from the neck heel where the drill holes are.
The neck looks a little high as you have said. Make sure the neck screws are tight and the neck plate should have the countersunk holes facing the outside.
Re-string it and see how the action is.
As Pablo said you may need to adjust the truss rod but if you have no experience in this ask for advice.
As Andrew mentioned make sure the neck screw holes are long enough and aren't lifting the neck