TD124 Idler / step pulley alignment issue

I am restoring a TD124 Mk1 and I've ran into a problem where the the step pulley and idler wheel do not align.

With only 1 fibre washer and the nylon washer fitted on the idler shaft, the idler is about 1-2mm too high on the step pulley.

idler height.JPG


I have the idler rod which goes down to the cam mechanism as low as it will go, photo shows it in speed set to the '78' position (apologies if I have the terminology wrong)

pin_height.JPG


Does anyone have information on the gap distance between the chassis base and the step pulley as I believe I could adjust the step pulley bearing housing slightly by loosening the nut and using a flat blade screwdriver to adjust the housing? Also, oil is leaking out of the bottom of the step pulley bearing housing - is there a way to stop that?

Anyway, I can't see how I can get any more adjustment on the idler as I think* I have it in the lowest position it will go. All the articles I find online take about raising the idler wheel position by adding more fibre washers (up to 3) but that's obviously not much use to me!

Any pearls of wisdom gratefully received.

Finally, here's a picture of how the belt is riding on the pulley in case someone sees something wrong there.

belt height.JPG
 
Maybe I can help.
The belt looks like it is riding low on the step-pulley. Raise the motor pulley until the belt rides on the center crown of the step pulley.
If the selector is set on 78 in the first picture then RAISE the idler with washers until the idler rides on the smallest step (darkest step). I use just the teflon washer and no fiber washer under the step pully to lower it and raise the idler as mentioned.

I do not think there is a published spec for chassis to step pulley. The bearing will leak some. You have a shaft coming out of the step pulley that enters a well correct? I just put a few drops of oil in the well, add a couple of drops of oil to the idler bushing and fill the main bearing twice a year. Also don't neglect the motor bearings!

Where is the oil leaking? Hanze Hi-Fi or Schopper sells a kit that supposedly quiets things and keeps the oil in but there are mixed reviews on that kit. I find my table runs silently with that blue belt.
 
Thanks for taking the time to reply.

The first picture was with the speed set to 45RPM, idler wheel is too high, 2nd picture was it set to 78.

It's the step pulley bush that's leaking, the one with the nut - can this be adjusted to raise the height of the step pulley? I've tried to 'gently' loosen the nut but am very wary of using any real force in case I break something. The step pulley obviously can only go so far before it hits the little arm that's there to stop it falling off if the table is turned upside down so it doesn't look like there a huge amount of wriggle room.

leak.JPG


I've gave the motor a full strip down clean, new felt and re-assembled: