Help before I do something stupid model 6329

[63Kcode]

I just bought this lathe and it has alot of play in the spindal. I did some looking and found a part that is not in the proper place in the gear head. It looks like it was just press fitted and has sliped out. It is the piece in this photo with the blue tape on it.



When I put it back in place the spindal is tight, but comes lose with just the slightes tap on the spindal. I can't see someone making a lathe where the thrust is placed on a pressed in bushing. Am I missing something or what?

Thanks for any help!

Larry