Oil well and clean everything then run the warm-up cycle with the bobbin out and top thread unthreaded. Rethread the machine and run the needle position auto-adjustment. The machine needs to be stitching when running this or any adjustment. To run the needle position auto-adjustment, hold down the red single stitch button when turning on your machine. This will put you in adjustment mode. Turn the knob on the control panel at the back of your machine to B1. Push the red single stitch button again. You will hear three short beeps and the machine will take a few stitches. Make sure you move your machine while the stitches are being made so that there is no build-up of stitches. When the machine finds the proper needle position, it will end with three short beeps.
If the proper take-up lever position is not reached after taking 20 stitches, the process stops with one long beep. Possible causes of this may include intermittent drag (tight spot) in the mechanism, trapped thread, improper tension setting, etc. After eliminating the problem, you need to repeat the auto adjustment until proper completion.