Squier P-bass Tuner Pop

[Gar23]

I decided today that I neglected my old squier long enough and decided to get some new strings and perform some long needed maintenance. I got the bass in 1998 and stopped paying much attention to it around 2005. Regretfully.

Anyway, during the changing of the E-string I noticed the tuner would pop every turn or two then continue winding as normal. As I got closer to the correct tension the peg was nearly unturnable and if I go further than that the peg slips over the gear teeth.

Normally I would take the bass down to my local repair shop (if you haven't noticed I don't know too much about repairing my instruments) but since I am eager to learn and the economy sucks and what not, I thought I'd do it myself.

To me it looks like the peg is loose and has too much vertical play in it. I'm having trouble finding how I can tighten the frame around the peg. Anyone know what to do with this?

Thanks.