Thread Breaking on Lil Sew and Sew Machine?

I'm a novice sewer so purchased a Lil Sew & Sew machine and the moment it arrived I noticed that the needle clamp screw/thread hole was sitting strangely! Pretty much every time I've used the machine since then, the thread breaks! Some fabrics are a little better than others, but as I've done lots of troubleshooting (changed needles, change thread, checked tension, checked threading, etc.).

I feel that it must be down to the fact that the actual shaft where the needle goes in is twisted. So the flat back is slightly to the left and the tiny hole for the screw to fit in to hold the needle in place, is slightly to the right. Basically it's not sitting dead centre! Thus making the threading situation somewhat difficult too.

Today I decided to open up the part of the machine that allows the shaft to move up and down in hopes that there would be a simple screw that loosens it so I could turn it into the correct position. Problem solved? Nope! I don't want to get too courageous and start unscrewing everything, but the one screw that I did loosen that seemed to be directly on the shaft didn't seem to do anything. Can anyone help or do I have to deal with just having a defective machine and my thread constantly breaking. Perhaps my instincts aren't correct and I have no idea what I'm talking about... in which case, any tips would be really helpful. Many thanks.

By Ella CP