First, make sure the heads are clean. If you're not sure, take a new paper coffee maker filter and dampen it with a little head cleaner. Run it gently over the heads a few times....if it's got any black on it, there is still some crud in the heads.
Alignment issues can usually be adjusted out by tweaking the 2 guide posts. If you don't have a tool for this, you can make one by taking an old flat screwdriver and filing a slot out of the middle. Play a known good tape, center the tracking control, and watch the screen while turning the guide posts. You don't have to turn them much, a little nudge should have a noticeable effect on position of your "white distortion".
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