This is a model fit exercise during a CFA in AMOS. I demonstrate how to build a good looking model, and then I address model fit issues, including modification indices and standardized residual covariances. I also discuss briefly the thresholds for goodness of fit measures. For a reference, you can use:
Hu & Bentler (1999) Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives, Structural Equation Modeling: A Multidisciplinary Journal,
6:1, 1-55
Generally speaking, it is not good practice to covary error terms. See here for an explanation: http://statwiki.gaskination.com/index.php?title=Citing_Claims#Covarying_Error_Terms_in_a_Measurement_Model