Cute circles! I always say, 'what it lacks in perfection, it makes up for in charm'. I love the charm of an obviously handmade piece.
Probably your needle screw is hitting the hoop because the hoop is too high for this kind of quilting. Quilting rulers are only about 1/4" thick. The foot is about the same height, so it all works together. I know that there are some machines that have to use a lower foot and rulers, which means you have to buy all different rulers to use on it. If you are interested in this kind of quilting you really should get the right foot and ruler.
Proud of you for trying new things!