That's the right alignment, but I agree with gusten. Checked the files with audacity, and it's probably that the distortion you hear is from the brick walling on the recording.However, if, as he says, it is mistracking, then the culprit could be a damaged needle, wrong antiskate, which you can't set on the U turn, wrong tracking weight, which you've fine tuned, incorrect alignment, or arm bearings.
Perhaps the best idea would be to contact U Turn themselves. They appear to offer very good support for their products, so I'm sure they'll be able to help.