I'm wondering if the elevator arm you removed is actually the correct part. It should bottom out with the setting in the lowered position and NOT touch the tonearm. You might open the unit up and see if there is another nut on the bottom of the elevator housing, and see if you can back it down some, and while you're in there check the actual operation of the elevator parts themselves. Cycle the elevator low and high and see how it works internally and then determine if there is any kind of adjustment to the mechanism. I've got a PL-25 with a Factory leather clutch in the mechanism. Yeah Leather! You can adjust the tension for fast and slow, but it's the worst design for raising and lowering I've ever seen. Spring loaded, etc.
I think I figured it out. The tonearm itself is too low in it's mount. Look at the base the tonearm sits in. It should sit a little higher from the base. There will be a set screw. Put the crescent back on. Then put it in the lowest position, and loosen the set screw (if you have a junk stylus now is time to put it on)on the tonearm base. Lift slightly the tonearm until it sits on the record and there is about 4mm between the tonearm and the crescent. Tonearm should be parallel with record when playing. Adjust the tonearm until the arm is parallel with the stylus on the record (use a junk record with the junk stylus). If you don't have a junk stylus or record, be extremely careful with the adjustments so you don't mess up the stylus or record. Tighten down the tonearm, and lift the elevator. The distance between the stylus and the record should be about 10mm in the UP Position. Adjust the crescent to get that.
Anyone have a suggestion on how to balance the tone arm? I find the instruction in manual hard to follow.
Any idea what cartridge goes with this unit?