This typewriter is about 3 years old. It is not holding the left margin anymore. It is ok for about 2 lines, then it moves 1 - 2 spaces, then it may go back to the first margin. Is there a setting that needs to be re-adjusted.
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The carrier slides on a silver shaft that is about 1/2" thick spray some WD40 on the shaft, if that doesn't do it you have to get some on the carrier motor bearings located under the case in the R. rear corner.
Look above the 3 key, you will see M REL that stands for Margin RELease. Move to the margin you want to change and wail holding the ALT key and press 3. Repossition the print head by using the BACKSPACE or SPACE BAR then again hold ALT as you select the new Left Margin or Right Margin (4=L MAR or 5=R MAR)
using the space bar or backspace keys, move the carrier to where youwant the margin set, you may have to hold down the "ALT" button (2nd key from left on the bottom of the keyboard) and hit the "3" button (the one under wher it says "MAR REL") , to move past the margin. When the carrier is where you want the margin set, hold down the ALT key and then hit he key under where it says L MAR (for left margin) or R MAR (for right margin). the ALT key accesses all the function listed above the keyboard, the CODE key accesses all the functions listed on the keys themselves.
Move the carriage (print head) to the margin you would like to clear. When you hear the beep, hold down the [ALT] key and press . Now use the backspace or the space bar to move the carriage to where you want the margin set. Now hold down [ALT] and press  to set the left or  to set the right margin.
If you mean that the paper dosen't space up you may have the lower feed rolls open (lever on top R. hand side) To set the margins, go to the margin, press but don't hold the mar rel key, space or baclspace to desired position, press L. or R. margin to set it.
HOLD DOWN THE "ALT" KEY THEN HIT THE 3 KEY THEN USE THE BACK SPACE OR SPACEBAR TO REPOSITION THE PRINTHEAD. THIS WILL ALLOW YOU TO MOVE PAST THE MARGIN ONE TIME. IF YOU WANT THE MARGIN SET IN A DIFFERENT POSITION - MOVE THE PRINTHEAD TO WHERE YOU WANT THE MARGIN SET, HOLD DOWN THE ALT KEY AND PUSH THE 4(L MAR) OR 5 (R MAR)
1) Move the carrier ro the place you want to set the left margin by using [SPACE BAR] or [BACKSPACE]. If you need to move outside the current left margin, press [ALT]+[M REL (3)]
2) Press [ALT]+[L MAR(4)]. The left margin is now set.
To set the Right margin:
1) Move the carrier ro the place you want to set the right margin by using [SPACE BAR] or [BACKSPACE]. If you need to move outside the current right margin, press [ALT]+[M REL (3)]
2) Press [ALT]+[R MAR(5)]. The right margin is now set.
That is directly out of the manual. I will upload the manual to FixYa, and you will be able to view it from the ML-500 Typewriter's product page: http://www.fixya.com/support/p131634-brother_ml_500_typewriter
check that there is nothing dropped into the typewriter that may be blocking the carrier try turning the machine off and moving the carrier by hand to the right side,if it moves ok then turn it back on space the place it stops , touch the MR (margin release button) then try spacing further to the right nad reset the right margin.
Move carrier to left margin press margin release, top left hand side of keyboard, back space to desired position and press L Margin key. Margins will reset to default if batteries are dead. Right margin simply space to whever you want the margin and press R Margin.