Constabulary, thank you!!! The scanned diagram is viewable, if you ever have spare time a scanned version would be tremendous help. I have a xeroxed version of the manual and can read it, I just can't discern the images very well. The scans you posted are Great, I am saving them with my PDF so that I have them in the future.
Gottknow, I will report back to you, I am not by the machine until later today, but I think that's what I'm not doing correctly. My father and I were setting up the machine and being that it's new to me, I set it up like his other Pfaffs (145, 545, etc) and did not insert the thread through #3, the bobbin finger. I went back to the pdf and was able to see what I was missing because of your comment. Thank you!
By the way, the animated illustrations show up well in the PDF xerox, it's the pictures like Constabulary posted that do not show up.