Thank you for the kind comments. In the spoiler, I believe that five pictures will be worth 5,000 words of instruction, as to how I fold my pocket squares. Warning: Spoiler! (Click to show)
Thanks so much, I will be trying that tomorrow.
Thank you for your comments. I believe that the pic doesn't do justice to the texture or color of the tie. It's, at least in my opinion, pretty nice but as you pointed out I find it difficult to make a beautiful knot with it. Your pocket square suggestion is totally right.
For the truly anal, Kent Wang offers a pocket square stand: http://www.kentwang.com/accessories/pocket-square-rack.html
Spoo has one, and he's posted a couple pics with his rather extensive square collection on the rack. The effect is rather striking. I actually considered one myself, upon seeing Spoo's pic. But I quickly realized that I don't own nearly enough squares to fill the rack, and my closet space is at such a premium right now.