It would seem that either the servo is defective or there are mechanical issues with the claw and its gear mechanism. You might consider taking pictures of both sides of the claw then disassemble the individual parts to free the servo and it gear then test it for proper movement.

Is this the claw from sparkfun.com that has a built in clutch ?

@Robot-Doc yes it is the arm from sparkfun.com that has the spring loaded clutch built in.

Your screws might be too tight and that SUGRU stuff on there may be preventing your mechanism from turning.

Hope this helped.

Remove the servo and reset the position of it so that it can close all the way, currently the servo doesn't look like it can move far enough to close the claw.

The servo will come out, it is designed so the servo can be removed. If you cannot see how it comes off there are youtube videos of how to assemble this claw which should give an indication in how to disassemble it.

Here is a LINK that should help you with repair of your claw.

Thanks so much to everyone that helped! This really did help my team and i a lot. I think that now we will be able to fix the problem we had with the claw. Again, thanks to everyone that helped! I really appreciate it!