I have gotten my HP 67 card reader to work thanks to the HP forum response to earlier messages. I have one remaining problem. I can read and write cards from programs programmed in the HP 67, however the reader has a difficult time reading pre-recorded hp strips. I presume there is an alignment issue. How is the card reader head aligned to read the pre-recorded cards ? Any suggestions ?

The head was aligned at the factory then glued into place... attempts to fix it will most likely cause more harm than good.

I would e very suprised if head alignment was the problem. It was never intended to be adjustable (the head is glued in place), and I've never heard of it causing a problem.
You might have 'copatability problems' if your motor speed is way off, or if your switch contacts are out of adjustment (you'll either miss the first transistion on the card if the card-at-head swtich makes too late, or pick up noise if it makes too early).
Look at the HP97 service manual on the CD-ROMs. The procedure for setting up an HP67 reader is similar.

Good afternoon Mr. Smith and Duell,

The card reader's mag head came loose from the plastic holder; the glue must have fatigued. I apologize for not explaining the problem in greater detail in my first request for assistance since I presumed this was a common occurrence, like the "gummy wheel" problem. So I repeat the question, are there any alignment/positioning procedures for the mag head that has come loose?

I think that that head alignment was set just by the mechanical tolerances of the plastic housing. One problem in getting the head reset is the head height/card pressure clearance. I have seen some machines fixed by inserting a card in the reader with a couple of ounces of weight on the head while the glue sets.