Jratcliff--I've offered suggestions already, I know. Seeing these photos I think your problem is definitely in the top threading--in the tension disks somewhere. Let me offer another suggestion..I have a Bro ULT D 2003..I LOVE it and it does a great job--BUT I am having a problem almost exactly like your pix show. It's too far for me to take it to my guru until it needs something else. So! Here's what I do. I thread up to the needle--then I raise the foot (It is already up)..I raise it as high as it will go and immediately let it down on the hooped project. Then I use the auto threader to put the thread thru the needle. As I get read to push the "go" button, I give a little tug to see if there's resistance on my thread end. Sometimes! I have to go thru the ''lift'' procedure again---or twice more. It's something in a tension disk (or brain) that is not cooperating. May I suggest that you experiment cking if there's resistance on the thread after it's thru the needle? If it is easily pulled thru after you have the foot down--then that's your problem & that, my dear, calls for medical help! Fingers crossed--good luck.