Hi- I'm sorry you are having so much trouble. Yes, the needle does have to be in the highest position, and the needle has to be inserted all the way up in the hole before tightening it in, but the threader grabbers cannot be awry either. If they are the least bent, and this is difficult to see, the threader will not work. It may be as simple as taking the sewing machine to your dealer and having someone experienced look at it. Otherwise, the sewing machine might need a threader repair...and that could run into some money...say 100.00. Anyway, when a threader works efficiently, it is worth its wait in gold, so please don't give up on it!/ Lissa