I'd almost bet that's a left homing machine. Meaning that when set on straight stitch the needle sits to the left. Those take special left home SS presser feet available Sew-Classic and other places.
Now, something does seem to be out of alignment. First take the presser foot off, the needle should line up with the slot in the needle plate as LilRedRocker said. It doesn't. So either the needle is in wrong, it's bent, or that's the wrong type of presser foot for that machine. The notches on either side should line up with the needle.
Joe