I have the correct 15x1 needle that was recommended by several people installed on the machine. I agree, it looks like the needle should go down a little bit more than it is, but I don't see any way to adjust the height. I've been chatting with someone on another forum, and he seems to think that the machine is actually out of time, but, like you guys say, everything seems to be pinned so it should be impossible to get out of time....?? By looking at the drawing above, I've got a couple ideas on how I can put it in time, but they involve cutting or other modifications to the existing parts. I'll update here once I find a fix, just in case it pops up in the future. Thanks again for all the input.