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The usual error Michelle, is fitting the correction tape the wrong way around. From memory, one side is shiny and goes outwards facing the typist, and the matt, slightly tacky side is towards the paper.
The Orange Spool Correction spool is the correct one
Sounds like the correction tape is not installed properly. Try remving and reinstalling it again. Make sure the hammer solenoid assembly is latched to its home position. After installin the correction tape you can manually operate the lift arms to check the feeding of the tape. If you have a loca dealer you can probaly take your machine to them and they may install the tape for you at no charge.
Be sure the corr. tape not a tacky kind, then type some thing and correct it watching the mechinism th see which one turns and in what direction. Install the empty spool on that hub thread the L/O thru the guides with dull side facing the paper and then the full on the supply hub. there may be two or more guides depending on the printer.