I got it!! It took a couple hours, but I got it. I went back and reread the manual and read the part about only messing with the tension knob when the pressure bar is DOWN. That did it. I basically turned it all the way to the right and worked it a little bit at a time until it balanced itself out. I can see the little bar come out behind the presser foot bar. I don't think it's perfect yet, but it's really really close. Boy I wish mom could see her machine now.
I took all the thread out of her bobbins tonight. Most of them are in really good condition. Two of them are kinda weird looking. One side is completely flat metal with no holes, the other side is all holes like the regular bobbins. Those two have a layer of rust under the bobbin thread. I'm hoping to salvage them. Otherwise, I have mom's 4 other bobbins and plan on getting some from sew classic.