Hey Ken the key point in the bag in order to transfer the weight to your hips is like a cushion in the bottom that rest on your lower back, just in the place bitches get their tramp stamp
If you just have the waist belt without the cushion the weight isn't going to be well transferred, even more, you should have your shoulder straps kind of loose to let all the weight rest on your hips.
In this picture you can see that cushion that I don't know how the hell is called
That pack is a Condor 3day assault pack, I have the Multicam version, a lot of guys think Condor sucks, but my pack is fantastic and I used it for quite a while.
By the way, man you absolutely need to get a water proof cover for your blanket because if wool gets wet it will add a ton of weight and will be completely useless for a long time until it dries, I usually carry my sleeping bag inside the pack just to keep it perfectly dry.
I'll post mine soon