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In trying to fix this, the timing was effected and the needle started going too low and hitting the bottom of the shuttle. I adjusted the needle bar. Now the needle will move back and forth in zig zag, but when you go to straight stitch the needle goes to the right position. I can't find anything about this model except that Sears deliberately made their machines difficult to repair.
Try loosening the set screw on the needle bar clamp, then use the hand wheel to bring the needle up and down. Keep adjusting the set screw until it hits in the middle of the hole.
Thanks will try