Not picking up the thread could be from it being threaded through the needle backwards (left to right or right to left). if you open the face plate look and see if you can put a drop or two of oil on the tension assembly area. That part might be a little dry and making it want to pop out on you. Also if you take a hair drier and warm that area up and it shoud soften any goo or gum that might be stopping it from working properly.
Billy