Is the blade in the right way? (Pointy end inside the housing).
Is it blade holder sitting in the correct grooves in the housing?
(Pic courtesy of Scrapalette)
Does the blade poke out the bottom of the blade holder when you press the bit on top of the holder?
Does the housing bounce up and down when you push on it?
Have you tried resetting it? (Is that what you meant by rebooting?)
New reset instructions 25/8/10
1-Turn on your machine with no cartridge loaded.
2-Rolls all the grey dials down to lowest setting.
3-Open up the front where the blade housing sits, use the black arms, with the
screw to pull that entire unit along its track over to the other side of the machine.
4-Over where that unit usually sits, if you reach back there with your fingers, you’ll
feel a red button sticking out.
Push and hold down that button for 5 seconds, counting to 5 slowly. Then let go.
5-Use the black arms to move that unit back into its place where it usually sits.
6-Next you are going to roll all the grey dials all the way up and all the way down 3 times, so three times total for EACH dial-doing 3 cycles of each up & down (may do 1 at a time)
7-Now press the CUT button
8-Turn the machine off
9-Let your machine sit for a FULL 45 min to an hour
10-After that full time passes, load a cartridge on, turn on your machine and try a
practice cut of something simple.
If none of that helps, then I would either give PC a call or as Maybug suggested take it back to the place of purchase.