For the original setup did you break the tabs on the outlet? If not the heater was getting power directly from the incoming source through the outlet. That shouldn't matter now that you are using two outlets, but I figured I mention it.
I'm not familiar with the contactor, but in the schematic it is shown as if the contacts close across the distance of the relay, and that is how it appears to be wired. Some contactors close and connect the adjacent terminals, so that one set is on one side, the other set on the opposite side. Was there a diagram with it when you bought it? Or anyone already familiar with this contactor? Just one thought. Do you have updated pictures to show the new outlets?