Well, I was able to do the "thread removal", but it did not fix the problem. There was a tiny little bit of thread (maybe 1/4 in.) there.
I don't think I realized how dirty the machine is. I started using it when my 401 was in the shop for months without doing anything to it.
For anyone who uses these instructions, the screwdriver for the tiny screw in the "jib" takes a 1/8th inch screwdriver, which I did not have. Now I do!
I'm not sure what I need to fix the problem, but it is not that. It's still not handling the bobbin thread correctly.
I guess it's time to do a full rehab on this one.
Thanks for your support.
bkay