Pat, Cathy,
The picture were taken as it came to us. I had not started checking on it at that time. You are correct, the needle is in wrong in that picture. However once oriented properly it still did not make it through the hole.
I have since corrected most of the side to side maladjustments, the biggest problem now is the cam drive is binding, the patterns are not properly formed and the top thread keeps breaking.
Joe