Repeating what was already posted in the original paper by G.F.P. Pushing the lever up in the lug, with the adjustment arm and any position in the range of the reproducer adjustment screw should be for the playback only stylus, and the adjustment screw for alignment of the stylus, which you kind of have to guide it with the screw adjustment as you play, the recording point is engaged by position the adjustment arm downward a little away from the, playback adjustment lug. Don't modify this rare combo recorder/reproducer, record and play on blank wax cylinders (preferably of new origin), did you replace the rubber washers (we call them gaskets now, but they were called washers in the early books.) Hopefully you are using a glass diaphragm, nothing else will sound good in these, many think, copper or mica are an improvement, maybe in others (I like the sound of glass in a C reproducer) in these, but NO, it is NOT, glass is king in these, and the glass diaphragms are plentiful and cheap. When these standard speakers are adjusted right, they record very nicely, crisp, and clear recordings, I prefer them to the later recorder. ("Wall if that Shawn Borri character recommends them, we shall stay clear of them! so says the TMC.")
Also note that Thigs may have been difficult if the linkage from the crosshead to the stylus has been changed, earlier cylinders can be pretty thick, up to 2.165-2.196"