It is in your top threading, believe it or not. Sounds odd but it is. Try this, insert a new needle (flat side facing the rear of machine), totally rethread according to your manual or go to www.sewusa.com for a free threading diagram, make sure that your presser foot is up, now when you are totally threaded, with the presser foot still up, pull on the top thread, it should feed smoothly, put the presser foot down and pull the thread again, it should barely move. This should seat the thread in the tension discs. If that doesn't do it, I am afraid that you may need a repair shop. Good luck.
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