Hello Ann,
I have just re read your question, that's the problem at 5am the brain is not engaged, the needle position problem, open the top of the machine and you will see the three needle poisyion lever, put the lver on centre, make sure the needle is centered and tighten or adjust the screws on the lever, the clunking sound you can hear if it is not a blunt needle could be coming from your motor if you have a gear driven motor not belt driven,not mauch you can do about that apart from packing some grease on the fibre gear, when you take the top off look to the right and see if you have two fibre gears near the balance wheel.
Ken
drivewithken@blueyonder.co.uk, December 2007