Without reviewing the films and your examination I cannot provide specific advice. However, given the description of your spine, it does not appear that surgery is imminent. Anti-inflammatories and physical therapy are typically the first line treatments utilized. The Schmorl nodes are areas of reaction in the spine, related to the degenerative changes. None of these findings can be felt at the surface of your skin. The bump you felt was most likely a muscle spasm. If this is still a problem a trial of a muscle relaxant may be of some use. Good luck.
MMG has a point, surgery should be the last resort. However, I waited to long to have the surgery and ended up with nerve damage from which I still have pain. I had fusion with plating in July of 03. The disc was so badly ruptered it was compressing my spin 50%. I tried anti-inflamatories and nerve blocks which did not help. I am only 41 and use to be very active. Now I can not do anything without pain.For me I wish I had the surgery sooner.
Spine surgery helps the vast majority of people who have it but some it does not help and some people have increased pain afterwards. The best advice anyone could give you at this point is to have more than one opinion from a qualified doctor and to educate yourself on your specific condition.
Don't have surgery unless it is a last resort!! I had surgery, even after all other options were exhausted and the pain I have today is about where it was before the surgery. The only thing they can do for me now is spinal fusion and I am only 27. Granted mine was from a 300 lb shelf falling on me at work and the insurance company putting me off till the surgery became emergency. I would try everything else possible before the surgery!