Jason,
Welcome to the site. I have the exact same machine. You have the bottles loaded correctly so that is not the problem. Do your shelves have the spacers on them that can be adjusted for taller or shorter bottles? If so, those may need to be moved to accommodate a taller bottle, otherwise, the bottles may not roll down the shelf evenly. Also make sure that the shelves are properly seated in the front and back. If the lip of the shelve is not flush with the vend gate it could cause things to hang up.
It appears that you are vending beer bottles--what size are those? The diameter of those bottles looks larger than a typical soda bottle and they just might be hanging up on the opening to the bottle gate because of that. At the back of the vend gate, there is a metal shim (for lack of a better word) that is there to assist the bottle into the vend gate evenly. That is there because the bottle gets more slender at the neck. If the barrel part of the bottles that you are attempting to vend is taller than a typical bottle--i.e. like a 16 ounce longneck would be as opposed to a 12 ounce longneck, that shim may be causing the problem. I have found that my USS 64 will vend just about anything, cans, plastic or glass but I did run into a similar problem that you are experiencing when I loaded some glass 16 ounce orange soda that was being sold at my local grocery store. Remember, that machine was designed with 8 or 12 oz glass or 12 oz cans in mind. Anything larger might not vend correctly.
On the light issue, if you have replaced the bulb and are still having a problem, change out the starter on the light. You will need an FS-2 type starter and they usually come in packs of two so you should go ahead and replace both--the one for the door and the one for the marquee light. That is a cheap, easy fix. They are both located behind the coin door. If that doesn't fix the light issue, then it may be the ballast which can also be replaced.
Hope that helps!
Tim