I'm not sure this will help but, I had a similar problem when embroidering in a small area like filling in an eye, or something else. My dealer said she thought there needed to be a minor adjustment to the 'hook'. I had it in for service a couple of weeks ago and she was going to adjust it then. Perhaps that could be your problem? Or, just another thought, are you using the correct foot for FM quilting? Hope you can figure something out...I understand how frustrating it is!