Yep that's a tension adjustment problem with the design...I have to say I love love my 350E....I usually only only purchase my designs from
www.emblibrary.com. They have a ton and I mean a ton of help in their help section. That is my number one go to library for sure....They even have videos to show things also. They talk about needles, stabilizers ect...you won't find a more helpful site...Free designs are ok but for the most part, if you are a member(it's free) of embroidery library you will get lots of deals. They also will respond to emails usually within 2 days for help. They are my go to site for all my needle help and stabilizers ect. For me I started out using Janome brand needles and really they aren't that expensive but emblibrary talks about the size of needles one uses for certain material weight and designs.