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John,
The cartridge wobbles side to side because the grooves are not perfect on the record. On every record you're going to get that. As for the needle being parallel, i'm not sure what you mean by that. If it's indeed parallel meaning it's parallel to the length of the cartridge, then that's bad news. It's suppose to be perpendicular (flexible) to the cartridge so that it fits into the groove.
When you look at the record spinning at a closer view, the needle is pointing slightly outwards with the direction of the record. It's suppose to do that.
Assuming what I said matches your description, if it makes a hissing sound, it's most likely there's lint or dust on your needle. Use a tiny clean brush and get it off. If it still makes a hissing sound, you need to add more weight to your tonearm.
The other thing you may want to look at it later when you get better is purchasing other brands of cartridges. If you get the Shure 477G, it's basically skip proof. I also the SK402 carts, but those are utter crap compared to the Shure carts.
Hope that helps 
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DJ Xquisite
Hip Hop & Trance DJ for the new millenium
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