Maybe this is just the way the machine works. Another new needle made no difference. In Connie McCaffery's book, she says that if the bobbin thread can be pulled up by turning the hand wheel, the machine is timed. This machine not only does that, but makes nice stitches. If Connie's comment applies to all machines, we're good to go.
This little curiosity will accept a spoked wheel and handcrank. It can be used that way to fine tune stitching until a better controller can be installed. (I do like the oddball SMs - including an ugly White purchased only because it's cast from a magnesium alloy.)
Dianne in Colorado