What is making my thread do this?
 

I am sewing minky and flannel and my thread keeps bunching up above the needle as I sew. I have tried different size needles and also ball needles. It keeps doing it.

Suggestions? Maybe the tension...but if so...what would I change it to?

I would change thread. If that didn't help then there is something shredding the thread, a burr or snag somewhere.

Oh...yeah I tried changing the tread too...so I need to take my machine in for service?

Try a new needle as some times the needle gets damaged and will be a big problem. Make sure you have no lent in your bobbin holder. Mine did that once and it took me a good long time to find a small piece that was near impossible to see but it sure was causing big problems with my stitching.

I would try Sewer's Aid (I lubricate the spool with a few lines and touch it to distribute the silicone, then touch the needle eye as well) sometimes I reapply a few times in each project. Also try slowing down, using a new needle (try a larger size), clean the upper thread track with a dollar bill or unwaxed dental floss. A tiny bit of thread or a small burr can cause the thread to shred. Also check bobbin area, clean well, sometimes it takes a piece of fluff. I would also lengthen my stitch (try all on a test sandwich) and see if that helps. Good luck.

It's shredding at the eye of the needle. Before taking it in for service, try a jeans or topstitch needle. They have a larger eye causing less stress on the thread.

They are also less likely to have burrs as they are drawn metal rather than punched metal.
My machine does bad things when I use a certain brand of thread. All other thread works fine.

If you change your thread and needle and still have problems, I'd change the foot.

I agree with PP. Also, are you using a vertical thread pin or a horizontal? I found that my Bernina likes the vertical pin better. Some threads twist as they come off the horizontal.

You didn't say what size thread and needle you are using. The sizes have to work together.

I have tried an 80 and now 90 needle. The tread is Guttermans...i often use Aurfil for quilting but since I am using Minky I though Poly would be better.

You lost me with vertical thread pin and horizontal. What is that?