There are three magnets suspended from the slinky in the TC1. The first two are centred in the coil. Motion of these magnets from earthquakes are responsible for the induced current in the coil. The third magnet is suspended in the copper tube, and dampens the system via Lenz’s Law.
The pair of magnets in the coil, and the single magnet in the copper pipe should not touch the coil and tube, respectively, and their tops should be flush with the coil/tube, as shown in the picture.
If the magnets are not in the right vertical position, you can adjust the magnets by threading the screw on the lid up or down. If you need even more vertical adjustment, you can bunch or release rungs clamped in the lid of TC1.
If the magnets are not in the right horizontal position, adjust the knobs on the legs.