[UPDATE AUGUST 6th 2014]
Had some more time this week to mess around with this mess of a VCR
Thanks for those who replied
I did the alignment first and it did fix the problem for a short period of time, but I found out tonight that it is indeed the heads that have worn out
I found this Youtube video that shows the exact problem I was having ->
http://www.youtube.com/watch?v=IknGPFEkgC0
Now I guess it's a matter of trying to find a head assembly for it, I did try MCM Electronics but I didn't see anything on their website.. I do have three other VCR's on hand but I really love these old Top loaders there not as common as they once were. I've included a picture of the head, I've been told you need to have the exact one or else it won't work? Maybe someone might be able to track one down. I saw a couple on Ebay as well but there not the exact part number.