Actually the carriage is not moving up and down. It is in position in the reel, it is inside the reel and moving back and forward, but not too much up and down.
Also someone asked about the blade. It is in position, about 2mm out down, and the force in the machine is been reset to the original, and I also tried in different speeds and different forces, but it continues just moving all around the vinyl marking it but not cutting enough. What called my attention is that the blade is not moving up and down between letters. I haven't grounded the machine yet. Do you think this has something to do with it?