Welcome to the site Candace!
If the grinder came from ebay, then it likely does need new burrs.
But before you decide, have you looked at them yet?
The collar is used to adjust the grind. You can rotate the collar anti-clockwise to adjust finer.
Do the adjustment while the grinder is running and empty so you can hear if the burrs get close enough to touch.
To check the burrs, remove the top burr assembly.
To do this, rotate the collar clockwise as many turns s necessary until it floats loose.
Remove the top and the upper burr carrier.
Inspect the burrs carefully. You can check to see if the edges are sharp or dulled.
Be careful, very new burrs can shave the skin off your fingertips.
Very old burrs feel softer and smoother.
If needed, you can get Super Jolly replacement burrs
Here:
http://www.espressoparts.com/product/MC_19
Or you could also go here:
http://stores.ebay.com/Phaelon-Coffee
(I have experience with both - and they are both excellent vendors and fine people)
Cheers,
Jon