SWF embroidery machine help, pulley spun

Hello,
Does anyone know how to re-calibrate the degree pulley on an SWF 1501C ?

The set screws loosened up and the pulley physically spun on the shaft. The red 100 degree mark in an inch or so off..

I was thinking of bringing a needle down to needle depth and then re-set the pulley to 180. Or is there a better proper way to calibrate the pulley?

Thanks!!

The machine always stops at 100 or the centre of the red mark, so just loosen the little screws x 2 of 1.5 mm on the brass portion of the rotary encoder attached to the top shaft right beside the hand wheel then after you loosen the screw keep the Allen key in one of the screws ,hold the brass piece from moving and turn the hand wheel back in the direction of the red mark,pinch the screw,remove the key, press start, then stop , then repeat until it's right in the red mark.

[SIGPIC][/SIGPIC]