In diagram #1 of the bed frame assembly, it appears as if the barrel nut goes into the bottom of the center-support beam marked piece "C". It should actually be going into the top of piece "C".
Assemble headboard before laying slats down if using headboard.
Note "MR" and "TS" marked headboard pieces. These correspond with the "middle rail" and the "top slat."
You will only need the supplied Allen wrench when assembling the base frame. If assembling the headboard, you will also need a Phillips-head screwdriver, preferably one that is power-operated.