If it is a similar model to the Simpson Contessa I have then there should be three small knobs on the left of the cycle select knob.
The first (Left most) of the three knobs is for the water level, the second is for temperature, and the third is the normal, drip dry, and sud save options.
If this third knob is turned to the left it selects sud-save (Machine won't drain completely, or if it is switched to the right it will select drip dry and won't drain at all. This sounds like the problem. Make sure you have the third knob turned so it faces straight up to normal.
Hope this helps.
Robert Persello, January 2005