...I believe that is the name of the pices that the thread is snagging on - see pics below - the first shows the underside of the garment once snagged bunch of thread is removed from the assembly. The next pics (in reverse order) shoe the thread snagged up in the assembly, then as I take the assembly apart to remove the "birds nest" of thread that has built up. It's like the bottom stich is not leaving the assembly, but gets snagged (as does every stich to follow) please assist if you can!
Maybe I sticking my nose where it doesn't belong but this looks like a simple threading problem. Be sure that the thread is in the TAKE-UP lever. There are four thead guide the thread must pass through. From the spool through the first thread guide at #1 than straight down to #2 than up to #3 throught the take-up lever and straight down to the left of the needle and throught hte neele form fornt ot back.
If the thread is not in that take-up lever the machine will not have any top tension (or be regulated) it will flood the machine with thread and wrap around that bobbin.
Also, be sure have you presser foot int he up position while threading this way the thread will surely pass through the tension disks, Set your top tension at 4, use good quality thread (get rid of the dual duty or all purpose) All of these steps will ensure a perfect balanced stitch.
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1. Replace needle
2. Get good thread. One without fuzz. Usually embroidery thread is better quality.
3. Adjust the bobbin carefully. I've enclosed a guide how to do this.
4. Thread the top while the pressure is up. While threading the machine give tugs to check for snags. If there are any snags you must fix them first.
5. Check the needle to ensure it is installed the right direction. Thread the needle.
6. Adjust the tension to four. Pull just a little bit to see if the tension is a little or way too much which won't allow the thread to flow at all.
Once the tensions have been set correctly and there are no snags the sewing machine should run smoothly.
Upper thread looping around the shuttle is typically caused by improper threading through the upper tension disks and takeup lever. Check the instruction manual, carefully rethread the top of your machine and make sure the presser foot is in the down position. If the problem continues it may indicate an issue with tension disks. Remove the upper thread, fold a clean piece of fabric and with the presser foot raised to open the tension disks, place the fabric it in the thread path, through the upper tension disks. Lower the presser foot and draw the fabric back and forth to clean any build up of grime and wax from the disks. Lift the presser foot, remove the fabric, rethread and try again.
If the problem persists, you should not need any tools to remove the shuttle to inspect it - sometimes it is necessary to remove the needle plate to lift it out. Check the edges and underside of the plastic shuttle for marks caused by needle strikes - these can catch the thread causing the issue you describe. If there are marks, you may be able to polish them out with fine (600 grit or higher) wet and dry paper. I generally replace them. Also check the tip of the hook for marks - you can often feel these with your fingernail. If they are present, you may need to get a mechanic to polish them out.
It could be a mechanical problem but before you do more first check your UPPER tension. If the upper thread tension is too loose and the bobbin tension is tight you can get looping on the underside of the stitch. So pull on the upper thread and feel if there's tension there. You can try to increase the upper tension and see if that helps.
There is still thread binding in the bobbin area. My advise is the remove the bobbin shuttle, I believe there is still thread locking your machine up. This is not an easy task and whatever you do don't lose the small screws. I can talk you through this the best I can, but if you are not comfortable taking the the bobbin shuttle out, please contact a commercial sewing machine repair shop.
First check the upper and lower tension adjustments according to link below and then check the knob (bobbin case) that makes the bobbin tension which lies inside the shuttle if it is too loose. Restricted it with the sheet metals around it so that it shouldn't move so freely up and down or back and forward. Be careful it should move freely a little but not too much. http://www.wikihow.com/Adjust-the-Tension-on-a-Sewing-Machine