Make your wooden axe! Put one stick in the center square at the button layer. Next, put another stick on the box on top of that one, then, put one wooden plank.
Place a big stack of items in the dispenser. Arrows do not work, as it flies over the pressure plate. Disconnect and reconnect the redstone wire to start it up.
First, you need to put two Redstone Torches on your input blocks, one on the top and one on the back. Then connect the top ones together similar to how you did.
The number of tipped arrows created depends on the potion inside the cauldron. When the cauldron is 1⁄3 full, 16 arrows can be tipped. When the cauldron is 2⁄3.