Thanks to Dillen, Solderon, Saint Begrowler and Rudy from Beolover for assisting in getting me to this stage.
If I press start the needle drops too early it is right on the edge of the lead in - but should be a few mm over - I had to quickly press up to save the stylus.
Is there a procedure for adjusting the timings of the carriage? Does it have something to do with the position of the ruler? I also think my carriage is going over too far in the stop position. This would make sense since it is also dropping early... its like everything is a bit off.
I will upload a photo to show how far over the carriage is moving.