Well--I did everything you said, Jackie. There was no oil on the Q-tips. The other two places I put a drop aren't near the needle, but are under there. As I experimented, then left it to iron or cut, every time I returned to try it again, it improved...I could go a little faster without the tension/loop trouble. The last time I tried it--I went fast--and it was normal! I smiled, turned it off, and will try again tomorrow.
I'll let you know what happens.
Sigh..no more oil anywhere but on the bobbin hook.
Thanks for your help!