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When troubleshooting a knitting machine, the first question to ask is, how is your sponge bar? A flat sponge bar can be the culprit that causes a myriad of problems. It doesn't matter how old your machine is or how much it's been used, the sponge material deteriorates and it can no longer do the job of holding the needles in place.
On an LK150, it's often hard to determine if the sponge is flat. My machine was close to 10 years old, and I was really surprised at the condition of the sponge. The needles didn't seem to be loose, but the machine just wasn't knitting well.
Lesson learned: change your sponge bar before you start to struggle. Start by removing the carriage and the tension mast. Remove the clamps so you can turn the bed over. And remove each of your needles. Close the latch and pick up the by the needle butt and pull it back.
It should slip out pretty easily. For more details about removing and replacing needles, see the video at knititnow.Com/lk150needle. Once all the needles are out of the needle bed, you may want to take time to clean it. It's just plastic, so don't use any harsh chemicals or cleaners that might leave a residue.
Just a clean paint brush may be all you need. Turn the carriage over and remove the old sponge. Position the new sponge with the ribbon facing up. The needles will ride on this ribbon. We'll replace the needles by threading them over the sponge.
From the top of the bed, close the needle latch and push the hook down. use your fingers of your opposite hand to guide the hook down. Then push the back of the needle down to thread it over the sponge. Use your finger underneath to guide it back into the slot.
Do this for all 150 needles. Take it slow and don't be afraid of bending the needles. Use enough pressure to guide the needle down and over the sponge and then back up in the track towards the front of the bed. Replace each of the needles.
The LK150 originally had gray and pink rollers every 10 needles to help you keep track and position your knitting without having to count needles every time. Once you get a new sponge bar in place, you'll be amazed at how well your machine knits.