so, you get the image off center, because:
a. You have not adjusted the ground to zero in the scope. So on CH1. Put it in CH1 only , then switch to GND mode, and adjust the "position" knob on the scope so it is perfectly lined up in zero (y=0), the horizontal line that you see should be in zero. Do the same with both channels.
b. For the Level, 100mV per division should do it, but get the best view possible, needs to be the same for both channels. If you get a very bad proportion, (horizontal vs vertical) it means one channel is giving much higher output than the other. If this is the case, go back and adjust levels first. Switch to input mode temporarily to verify the perfect 45 degree line. What i mean with levels it will be both input levels and repro/sync levels. All that has to be done first, otherwise it will be very hard or impossible to adjust. I think that is the order on the service manual. You can also do that to figure out the order of channels when connecting to the scope (so it looks like in the manual or the pic that jpmorris posted above)
Now, after that go to XY mode. The order of the channels really doesn't matter. you are looking to minimize the "hole area" in the ellipse. Ideally zero, so it looks like a line. Now that in practice is not impossible, but a little space is ok. You will notice that it changes from 1khz to 10khz. Start adjusting with 1khz, then move to 10khz. Use tracks 2 and 15 for hooking up the scope. Tracks 1 and 16 will be mor unstable due to being on the edge. You will notice noise and fluctuation which will be an indicator of how smooth the tape goes over the head, and also how smooth your transport is. Some of the pictures above don't load.