Not a stupid question at all; on the contrary, it's a complex one. Have you taken the upper tension mechanism apart? It's good to clean it, polish the tension discs and calibrate the correct tension midway between 4 and 5 (set by pressing against the numbers to disengage the peg).
I've used the 201 for free motion, but it's not my first choice because of the position of the thread - a bobbin case that can be removed from underneath the machine saves some of the trouble of removing and re-positioning the quilt. (I've heard comments that the 201 is not well-adapted to FMQ because the thread makes a 90° turn off the bobbin, risking tangles at high speed; I've never had a problem.) The 201 is a great machine, quiet and smooth as silk.
The arm on the darning foot that rests on the needle screw may have to be bent downward a bit so it engages the spring action. Hope this helps!
ETA: My comments were written before anyone else had responded. I just forgot to send!