yes...my feed dogs are down...so that's not it. On my Kenmore there was a button on the top that made the presser-foot push down harder on the fabric when it was sewing. You could loosen it when you were sewing really thick material...like blue jeans, etc.
I don't know what that little knob is for on the right side of my machine (underneath that wheel that you use sometimes to start stiching) but I loosened it to the left about 1/2 between the roman numerals and it seems to have fixed the problem. It is allowing the darning foot to not be so close to the material when it comes up.
Next time I'll use a thinner batting. I wanted my little bears and hearts to plump up on this quilt. I am using Mountain Mist low-loft that you can get from wal-mart. I quess I'll go back to the more expensive warm & natural.