There are only a few things it could be.
Chuck told me....He has resolved all issues over the phone.

Did you join the yahoo group yet?

I am thinking, you can get faster answers from other owners.
Especially, with the time zone difference.

My guess...is
check the bobbin case thing... (it is circular,half moon shape)
Sounds like it's bent.
Change your needle.

Unfortunately I broke two needles, so I did change needles (not the way we quilters would like) but I thought the same thing you did, that it's either needle or bobbin case area. I had my hubby rebuild it several times thinking that we did it wrong. I'm going to call chuck in the morning, he will probably fix it over phone. I will keep you all posted . I'm sure once it's running smooth I will fall instantly in love, I'm still very fond of my new friend :)

What size is it - 13, 15, 17"?

It's a Bailey 13, chuck was great, I called this morning and or turns out you have to sew for awhile on a flat table before moving her to a frame, I'm not sure how this makes a difference but it works great off the frame right now.

Hope it continues to work for you!

Congratulations on your new toy. I am so glad you got everything fixed. God bless. Penny

Congratulations!! I know you will do wonderful work with it.

What kind of frame are you putting it on? I have a Little Gracie II frame that now has a Janome, and would like to upgrade to a Bailey to have more throat space. Congrats, and I hope you get it working soon!

It's working fabulous now. Thank you, the trick was to run the machine with it stationary for three to four hours prior to moving it to the frame. I do have it on a little Gracie II frame. Good luck with your upgrade