I have an LG II with a 15" Bailey -- you're going to be very happy with your setup :)
Make sure when you're practicing on the frame that you're using a full sandwich (fabric AND batting). I tried to practice with fabric alone, trying to keep from using up batting, and I ran into the same problems that you are.
If you haven't signed up on the Bailey group on yahoo groups, I HIGHLY recommend it. Lots of Bailey users in there that can guide you through the early learning stages.