Yes, as close as you can get with a pair of side cutters. This seems like it is too close but it is just right. Often I file the top of the pin after the cut as Mike said but mainly to start flat. That way the first few taps start to mushroom the pin. Some start with a previously mushroomed pin but I quit doing that after a try or two because I think the way I described earlier in the thread works better. By the way I got that method (hole in the block to start the peening) I got from a video taken from the Dovo factory.
The biggest thing with peening is not to think about how long. Instead look at the pin and concentrate on how it looks. It's like Tom Selleck in the first season of Magnum PI when he is picking a lock and the dog is coming down the hall towards him. He says to himself, "Forget about the dog. Concentrate on working the lock." It sounds trite but it's true. Forget about how long or what it is taking. Just trust the process and keep lightly tapping until it is right. Oh, and if you don't tap too hard the collar should stay put. It's too much vibration that makes it bounce off.
Keep with it. You'll get it.