That looks OK, it is normal for Look bindings, the indicator is what should guide your forward pressure settings. If you push the heel lever all the way down before you step in, it will be easier to fit your heel in. The only thing to make sure is that the heelpiece engages the boot in the proper place (i.e. over the heel lip) when the binding is clicked in.
I am not an expert in the rental style binding, but looks like your toe is not set at the proper distance from the center of the boot. I don't think it is dangerous, it just moves you forward on a ski, which changes the way ski steers some. Try setting your toe in the proper range, then slide the heel piece back in its proper range and check that the forward pressure indicator is in the proper position, if not move the heel piece a little to make sure that the pressure is set correctly. I don't quite understand what you mean by "it does not feel that it will release". The boot is not supposed to be wobbly in the binding at all, when the pressure is set properly, the boot should feel very solid and very secure. Keep in mind that the forces during the fall are MUCH higher than anything you can exert with your hands in your living room. Again, Looks have a lot of elastic travel, but they release when they need to, and they do it better than almost anything else on the market. Finally, an advice (that perhaps I should have offered right away)- if you have a decent ski shop in your area (which you totally should, you are in Whistler for god's sake!!!)- have them check the binding for you and make sure everything is all right, have them also look at the boot as well; sounds like you had some major trouble with this particular setup, so it makes sense to have it adjusted properly. Given your height and weight, this is a very appropriate binding for you, but of course this is Internet, so we cannot see your binding and boot soles.