I have this setup on my White Number 8.
The long skinny bar is to push the motor back so that the friction wheel doesn't come into contact with the balance wheel. You should have a separate belt that runs from that notch on the end of the friction wheel to the notch on the end of the bar on your bobbin winder. You'd put the belt on, push the bobbin winder up, and that in turn will use the rod to push the motor/friction wheel back, keeping your needle from moving while the bobbin winds.
I'm in the process of trying to get a new friction wheel for mine, since the one on mine has an indentation in it from sitting in the cabinet. Make sure that if you put the machine down in the cabinet, that you put a couple of layers of batting between the rubber on the friction wheel and the balance wheel.
:)