Mickey2 -- it was the manual that says flat side left and threaded right to left. Makes it kinda confusing! Thank you for the oiling tip I will try that see what happens. And, yes if I hold the lift up lever it will stop moving. We ahve cleaned it many times (clutch) and even w/a light sand paper but it still does not always release.

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I am not sure how long I have been putting the needle in wrong, but now that it is in correctly she is sewing like a charm! Funny thing is when I had the 12 in wrong it only skipped every so often, but the 16 did not pick up the bobbin at all.
i just feel like I got Christmas present having this thing work so well now. May you all have a great Christmas too.