singer 328k machine

I can't seem to get the hand wheel and the inner wheel in it to loosen up when I thread the bobbin, so the needle moves up and down as if I'm sewing when I'm threading the bobbin.
Does anyone else have this machine?  If so, how do I fix this?  I am following the machine directions to turn the inner wheel a certain way to disengage the needle, but it's not working.  I hope this doesn't ruin the machine.

It sounds like the hand-wheel wasn't put on correctly.

It's a pretty easy fix:

• Take out the screw from the silver inner wheel which you would usually loosen to wind a bobbin.
• There should be a washer which sits in the larger hand-wheel.
• Remove the washer and turn it clockwise until it fits into the wheel again.
• Replace the silver inner wheel and screw.

This should work. If not, try again. It's a weird assembly that seems to work when the inner washer is placed correctly. With a little trial and error, you should be able to get it working correctly.
Good luck!