Cricket,
You need to check and adjust all 4 specs they work together. And as Tammi said said, check for burrs or other things.
When I set the gaps on these machines I try to set them in the middle of the allowances. So far that's worked good for me.
If you needle is being bent, there has to be a physical cause for that. Either the hook is out of time or the fabric is being pulled and is deflecting the needle.
Joe