Originally Posted by pvaudio
You should be fine with 1/8. Has it settled yet, as in, has it been about 12 hours since stringing? If you cut the tails too short, as the tension is equalizing throughout the frame and then onto the first hit, you can suck the tail into the knot if it's too short. If you make your knots tight and make the tails long enough but still stick inside the frame, then you're fine. One of the many reasons I use the Wilson knot exclusively. The tail runs directly along the frame like the Parnell, only the knot is more compact yet holds just as well.
I usually cut my knots about the same length as yours; however, I leave them longer with new strings because of 1 string culprit in the past. Prince Recoil and that slippery Teflon coating! I left a tail about the size shown in your picture then came back a minute later and the tail had slipped through. I was so ****ed. So now I leave them about twice as long for a little while and then snip them down later if I think about it. Long tails have never bothered me.