Ok, sounds like you wired it per my instructions instead of JoeD's instructions. Your posting was a bit confusing and depending on how we interpret it, you'll wind up with two different set of instructions.
In regards to your final question, the answer is yes but, not per your (e.g.).
Your (e.g.) implies that the lights can never be shut off because there's no switch between the outlet and the lights. The lights can be powered on one switched circuit inside the 14/3 and the outlets can be powered on the other hot circuit in the 14/3. Just make sure to tie the outlet circuit to the incoming side of the switch or you'll end up with switched outlets.
Another thing is that you only need 14/2 or 14/3 depending on what you want to do but, 12/3 is overkill.