On your free-body-diagram for anyone of the masses, you should only show the forces that are acting on it.
It seems like you have made a fair bit of progress for m1...you noted that its interaction with the Earth is a non-contact force given as m1*g, that its contact with m2 is a contact force (maybe called N21, the normal force exerted by 2 ON 1), and that its contact with the floor is a contact force (maybe called Nf, the normal force from the floor).
Without worrying about centripetal forces (not applicable for this problem), I think your major confusion is labeling N21 as m2*g. If you label it just as N21 and likewise draw a force on m2 (on a separate F-B-D) as N12 (the Newton's third law pair), and continue in that fashion for m2 and m3, you might have some insight as to why simplistically labeling it as a generic contact force is beneficial for solving the problem. Eventually, you'll be able to use the idea of balanced forces in a state of equilibrium to solve for N21, N12, N32, N23 and see how the weights of the other blocks play into the problem. But you need to go through this process first, and having the correct F-B-D is absolutely vital, not just because your homework asks you for it, but to understand other problems as you progress.