I originally posted this video not knowing how to repair or fix this problem. With the help of people on the yahoo seeburg forum I have learned a great deal including how to fix a slow transfer arm. Excellent forum with many helpful berg owners like Ron Rich!
If you watch this video and have this same problem on your Seeburg jukebox, then here is the problem and solution.
Problem: the old oil inside the pin has turned to varnish and sludge because ALL Seeburg Jukeboxes need regular lubrication oiling with 3IN1 Motor Oil on all moving joints, pivot points, shafts, etc. Just do not oil the contact switches or get oil on the stylus arm / needle..
Solution: oil the ends of the shaft and keep cycling the transfer arm and keep dripping oil on the ends. After about 100 times the oil will finally penetrate inside and it will work again. Keep this up for a few days. Put something below to catch the excess oil. I used Blaster PB penetrating oil to get it free. Then I lubricated using the best oil for a seeburg which is 3IN1 MOTOR OIL 20SAE (has a picture of a motor on the bottle) from Lowes. Don't use the "3IN1 all purpose oil" as it will gum back up next year.
Also use q tips and small screw driver to clean off any old varnish or gummy grease from the transfer arm.
If this doesn't work, you will need to remove the transfer arm and degrease it. Take pics so you know how it goes back on. If you decide to remove the record rack, be sure to mark the exact footprint so you can put it back exactly in the same place.
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