Well at least I know I'm not totally crazy! I researched my older Kenmore online and found out that it has the super-high shank foot. The needle is positioned to the left of the center of foot. The only way you can get it center is put it on zig zag stitch.
Wow...and I just love this machine! Haven't sewn on it much since I got it recently at Salvation Army.
You can get an attachment online to be able to use low shank foot, but I still don't think it would align the needle center like I want it to.
Oh well, it's either back to my trusty old Singer, or learn to look only at the needle and not be distracted by the center of the foot. Not impossible, but an adjustment mentally for me :)