Yes - you've put the sponge bar back the wrong way.
Take it out again. Push all the needles back in as far as they will go.
Put the sponge bar back in AND AT THE SAME TIME PRESS THE NEEDLES DOWN WITH YOUR HAND AS YOU GO ALONG.
what you did was to put the sponge bar in under the needles when it was supposed to be on top of them.
Jo
July 2009