My S7 is approx 1978 purchased new, I also have a short bed model about the same vintage, both are grey and have power cross feed. A few years ago I had one of 1960 vintage. On all machines the clutch engaged, spindle running the handle sits at 6 O'clock and moves to the right – anticlockwise to disengage the spindle. In either position the bely guard can be opened without fouling the clutch handle.
IMO there is probably something wrong on any machine that is not operating in this manner, I have never had occasion to dismantle the clutch assembly however looking at the manual cross section for clutch adjustment it may be that the spindle with flats that operate the push rod may be screwed into the handle unit and thus able to move ? If this was the case then the effect would be that on Mike D's lathe.
John
PS from a safety point of view I would advise not opening the cover with the spindle running
Edited By JohnF on 15/05/2019 23:00:51