I put another loop in the needle and removed the bearing and placed a washer behind it. After close inspection, I did see any grooving but added the washer anyway. I had some counter wait in the back that the photo doesn't show. I had in the front, but the needle was making contact with it. However, I did add an extra screw with one at the 1 o'clock position and the other at 11 with the needle mounted at the 6 o'clock. I also added the bend so the needle comes straight down from the bearing If the flywheel above is on thingaverse, I'm gong to trying it.
I can see that consistent needle making is a big deal. I ran the motor at about 5800 and 6000 rpm and 400 mm/min. My first needle broke because It was too long. I was able to cut out quite a bit of stuff with my second needle. (oh I also put a drop of super glue to hold the needle to the bearing.)
For the most part I was pleased since this was the most I've been able to cut without a break; however, I have a new problem. The cut looks great from the the top, nice a clean. Not so from underneath; it wasn't a continuous cut and I still had to use an xacto knife to cut the parts free. The needle is definitely going all the way through, but there were places were I could see individual pin holes instead of a continuous cut. Given the settings above, I can't believe I have the cutter moving to fast.
The only thing I can think of is the needle is still too long and it may be deflecting slightly and not going straight down. My needle goes through a welding tip and probably extends abut 15mm at full extension.
Or could this be a needle sharpness issue? I have to admit that I may not have the sharpest point and sharping a .025 piece of wire may be a skill I haven't yet acquired.
Edit: Found the flywheel on thingaverse and your installation instructions at #1431. I really like this since I don't have to coil the wire. This is my weekend upgrade. Thanks
dkj4linux.