Thank you, Leon. -- exactly
Thank you, bkay for the link.
I agree that the thread needs to go over the hook. The instructions are written out and illustrated on page 12 of the pdf manual that bkay linked to. The manual calls it a retaining fork. It does state to hold the spool so that you don't keep pulling thread off and use what you have in hand. You actually go around the disks and into the wire spring. Then pull it up past the retaining fork so that it goes into it and stays in the wire. Then up to the take-up lever.
Janey - Neat people never make the exciting discoveries I do.