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We had this problem With the "O" a few years ago. If memory serves me right, It was a bearing in the pulley for the belt. It's inside the right side of the machine. Fairly easy to change out. Another problem we had later was the v-line around a cross for example wouldn't cut a consistent width...

hope this helps Chuck This might be the problem. On the back and underside of the carriage spindle, below the tool force dial, you will see a round clamp - it has a screw in it that clamps into the groove on the stainless steel rod that the assembly moves on. Sometime that screw comes out...