If your fabric 'ruffles' I'd say your walking foot isn't walking. Do you have it installed correctly? Don't forget that there is a bar that either goes over or around the needle clamp. This is what makes it 'walk'.
Also, with the stitching coming apart on your 9 patch edge--you either have the stitch length to long or you are putting to much pressure on the seam and the stitches are pulling apart.