Thanks Art....I appreciate your advice also. I will keep it for future reference as I know so little about this machine. The needle was inserted correctly. I will certainly use your advice on backstitching too.
I spent this afternoon following WizCrafts printout and he was "spot on". When I lowered the needle, it began to sew perfectly as well as backstitching. I took the head off (which was a bit scary for me) but it was actually very easy, dropped the needle bar as suggested, and reinserted the needle to the proper position, and everything worked like a charm. I did raise the check spring also. Thank you again WizCraft.......I've been struggling with this machine for quite some time.
As an aside....I did talk with Steve when I was first having difficulties and he walked me through the necessary corrections. However, once I changed thread and needle size, I began to have problems again.
Anyway.....thanks to you both...this board is awesome.