Janeen, I also have the set up you do..the Bailey 13 and a GraceDlite frame. I LOVE IT!! My frame looks a little different from your pictures. I have a third pipe to hold the batting. If you happen to put a third pipe on it to hold the batting, take some sticky velcro and position it about 8-12 inches apart. It will hold the batting in place when you roll it on to the pipe if you are not using the big rolls of batting..
I got my machine in June. We have had a couple of problems (minor) with the machine, but I am beginning to think it is the thread and difference in fabrics (backing and top). Also, my machine locked up last week. Mr. Bailey is really nice about talking you through any problems you might have. It doesn't say anything in the booklets about oiling a couple of places. Mine locked up behind the bobbin. You have to take the bobbin and shuttle out and put a drop or two of oil behind the shuttle mechanism. There is a rod that goes into the bottom of the machine that moves the shuttle....just a couple of drops behind it works wonders. I had done about 20 quilts when this happened. So if it seems to have a little knock in the sound of the machine...think about putting some oil in there...
How is the little black tubing working on the take up lever? Good luck and happy quilting...Karen