Brother BAS-416A Needle Select Problem

I just got a 9 Needle, 1 Head Brother (BAS-416A). After a few errors, and a replaced fuse the machine seems to be running great in test mode except for one thing.

When I try to change the needle (by using the Needle Select Button) I get an ugly noise and an error that says:

N_Case Lock. Turn off machine.

After reading the instructions this is what it says about the error:

N_Case Lock.
Cause: Needle bar case is too tight mechanically or locked and cannot move.

Solution:
Remove Load.

I am not sure what remove load means nor am I sure if there is a locking mechanism I need to unlock or loosen to get the Needle Cap to move freely and switch between needles. Currently its stuck on Needle 7.

When I try to manually twist the gear it seems to lock up when I try to move it all the way to needle 6 or all the way to needle 8, not sure if that is normal or not.

After some messing around I found out this.

When I move my pulley to 200 degrees I can manually move the needle gear and it will switch between needles just fine from 9 to 1 and back no problem. But when I go to push the needle select button, it asks me to put the pulley back to the 100 degree position. After I do this, and try to manually move my needles, they are once again jammed.

After more messing around I realized the thread take up lever for the selected needle is offset to the other needles when pulley is set to 100 degree . This causes the machine to not be able to switch freely when selecting needles. Yet, when I put the pull to 200 and making it able to switch freely, I notice the thread take up levers are all even horizontally.

So my question would be how to adjust the pulley so the thread take up levers are all even at 100 degrees (not 200 degrees as it currently is) so I can use the machine to auto select needle. Remember the machine will not run until the pulley is set to 100 degrees.

If this is not my problem, anyone know what may be the problem?

Thanks guys.