There have been several postings on how others got rid of the musty smell, Odor Eaters, charcoal, putting it out in the sun, etc. that have worked. Some have put dryer sheets in theirs too.
Don't know what to do about the bobbin winding problem. Billie, lostin51, has some lessons on the FW on the board, and might have something about it there. If no one else has any suggestions here, just start another topic about the bobbin winding problem. There's plenty of help out there.