Yep Ripped on Scotch! You got it! I didn't know this until I took my first Bernina Mastery class. I believe we were also told that when upright, the thread should come off from the back of the spool, just like the first pic, you would take the end of the loose thread over to the left to thread the machine, so the thread would be coming from the back. Ya learn somethin' new every day don't ya?