Hard to tell from the picture, but it looks as if the action's too high, Benjamin. Are you taking lessons or trying to figure it out for yourself?
Take my word for it, if you want to pick an instrument that you can majorly suck at immediately, classical guitar would be the one. Reminds me of a CG joke.
Kid asks his father for an electric bass. Father says, okay, but he has to take lessons. The first week, the kid comes home and Dad asks him, "How'd the lesson go?" "Great, Dad!" The kid practices all week, goes to school, but doesn't come back from his lesson until midnight. The father asks, "What happened? Where have you been!?" "Sorry, Dad, couldn't make the lesson -- I had a gig."
This is a really, really, funny joke for CG players. Pickers don't usually grok it.
I've never been successful smoking a pipe while I play. Ashes everywhere. Segovia seems to manage quite nicely however.