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Needle hits plate on sewing machine?

Hi there, I have got an E&R Classic LC21 sewing machine, and I cannot use it because the needle keeps hitting the plate on the sewing machine. It has a two needle position and I just cannot seem to sort it out.
Need help as I am on a low budget.
Crazychick, November 2008
If you can take the top off the machine move the needle position lever back and forth so you can see what part moves, slacken the screw near the lever and you can move the needle bar.

drivewithken@blueyonder.co.uk, November 2008