Problem Setting Up ClearAudio Concept

I'm somewhat new to setting up turntables (I've only set one other table up before). I'm having two problems. 1) The tonearm lift appears to be too low so even when raised the tonearm hits the record before the lift. 2) The tonearm is not tracking laterally. This second problem is obviously a bigger deal cause it makes the turntable unusable. Does anyone know what I might have set up incorrectly?

Thanks for your time!
Update: I was trying to set the tracking force to see if that would fix the tracking problem. While doing this I noticed that I get inconsistent readings on the downforce. Without changing anything the readings range from 1.8 to 2.5 and while the stylus is on the gauge the downforce doesn't hold at a consistent weight. I'm betting that whatever is causing this is also causing the tracking problem.
If the lift mechanism has no provision for adjustment then likely the arm pillar is too high.With the table off place the arm on the record.Looking from the side does it seem that the arm is reasonably level from pivot to cart? Does the headshell look parallel to the record? When checking downforce are you sure arm is not contacting lift? I would also examine cantilever of cart to see if possibly suspension has come loose.Good luck.
I am sure that lift is not contacting the arm. The arm does not look level from pivot to cart, it is sloping down towards the cart. I cannot however, see anyway to raise or lower the arm, and the manual says nothing about it.
Look for some local audiophile clubs and get someone to come over and help you. I assume you didn't buy from a local dealer, as they would set it up for you, but if you bought it mail order, call them and ask them for help.