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There are no adjustments for this machine. Chances are that the plastic gear that is driven by the worm gear has a spot that is worn down and when worm gear hits this spot, it does not drive . Replacing gear is the only remedy. Good luck.
Royal shredders have a nylon worm drive gear that is designed to loose teeth rather than allow an overload to damage the whole gearbox. When the motor's worm drive hits an area where teeth have been removed it screams because it is no longer loaded!
This part can be replaced if you are handy with fixing mechanical devices and know how to safely do so. Spare internal parts can easily and quickly be ordered from Royal by calling 1-800-222-2310. I find their support people to be outstanding.
Something is stripped. Most shredders are gear driven from the motor to the driver shaft and onto the driven shaft. Check that the motor has not come loose from its mountings, the drive gear has not come off the motor or the gear has stripped. You will have to split the shredder housings to do this.
Check to see if cutting shafts are turning in either forward or reverse operation. If not and you can hear the motor running the take off cover and check plastic gear drive train...probably something broken in there.
The punching holes/not shredding problem is caused by a collar that encapsulates the cutter shaft ends. Vibration causes the collar to fall off and the shafts to spread apart. The fix is to pull the paper bin out, remove the 5 screws holding the top assy., and pull off the top. You'll see the collar and the screws will be somewhere in the paper. Replace the collar and tighten all the screws at each end of the shredder assy.
When you say the shredder comes on do you mean that the motor runs...if so can you see in the slot whether the cutting shafts are turning.??? If the motor is running but the shafts are not turning then you will have to open up the unit to see if you have lost teeth on a plastic gear...if so call Royal at 1-800-524-0799 for parts assistance.