Hi there I hve a Brother Innovis 1200 and its a new machine. Had probs as well with breaking the thread. Try decreasing the tension. Also the suggestion about using a needle for metallic thread is good. I did that when a friend told me to change the needle and have not had a problem since.
As far as the hoop is concerned. Have you got it with the batting and backing fabric. Now if you have, I find that is a problem. Think I am going to just do the embroidery before I put the backing and batting in. I canīt get any of the quilting designs to work in the hoop. A friend of mine has a Janome and she can embroider with the whole lot no problem.
Good luck Elle