I adjusted the reel& bed knife. When I closed the gap a bit more it turned out the reel has a some high spots. (Not turned properly!) He gave me some lapping paste & appeared to work good! When I put paper between the blades it would fold it but won't cut so I thought no contact between the reel& bed knife it would work ok then.
So I gave the old girl a go again.. It made the lawn look like smooth carpet then I started to notice fine lines in the lawn AGAIN! Gggrr 
I will have to take it to someone in my area who can do properly.. (Newcastle-maitland area) I am giving up! It's to hard lol
