Originally Posted by
PaperPrincess
To me, it still looks like it's a problem around the needle. If the thread frays, the frayed ends get pushed up the thread path and you wind up with a wad of thread about 2 or 3" above the needle. The thread travels in and out of the fabric many times before it's actually sewn. Do you have a manual? I would get it out and double check your thread path.
I FMQ with my Tiara and also my Ellisimo and have found that regardless of whether I'm using Poly or cotton thread, I have good results. I did discover that the brand of needle in my Tiara makes a big difference. None of one brand worked well and I was very frustrated. I tried another brand and all has been great since. Also, be sure you have your tension set correctly. Good luck.