Hi nilecrystal,
That sketch is used later in the game, once you have the stand that it sits on, and you know where to place it so you can set it and look out to sea.
For decoding the journal, all you need is the top part of the astrolabe, and then follow as per MaG's walkthrough:
Open El Toro's journal. Open to the page with coded words. See the round thing on top of a stand. It is an astrolabe.
Click on the coded words to be decoded in the journal.
A new page with the paragraph that has the coded words.
Click on a script and then click on the letter(s) you think it corresponds to.
All the highlighted scripts will have that letter on top of them. There are 5 pages to be decoded.
Do you see the letters change in the journal?