Epic Fail!!! My new "solution" was even worse than before. I even had to do your "looping" thing too Macybaby, same thing was happening to me with droopy thread. It helped slightly, but still didn't fix it.
Plus I didn't go to JoAnn's even though I was close because I thought my solution would work. Oh well....
I'll re-read all the ideas in my thread from a week or so ago about using these big cones. Perhaps there is something in there that will work for me after all. Otherwise, I'll hit JoAnn's next time I'm near and just use my plain old spools of thread until then.