If the motor pulley touches the hand wheel it probably just needs a new rubber pulley. I think SewClassic have them. I don't know this model first hand, there might be some adjustment or release action on these but I can see any from the picture. Some of these take slightly different needles than the basic domestic type. If you don't get any detailed help and hints here on the QB go to Victorian Sweatshop, there are lots of expert help to be found.
A temporary fix for the rubber wheel might be to rought the surface with a bit of sand paper, then apply some gripping resin (violin bow resin) to get some gripping action back. New rubber will make all the difference. The winder needs new rubber tire too.