Are you sure you used steam a seam lite? I use it all the time and love it. I just bought a huge box of it. I don't have trouble with it at all. I made a whole quilt where I satin stitched around everything without problems. The needle had a little bit of gumming up after hours of sewing but still sewed fine.
Try a different needle or call the manufacturer. If it is stem a seam you should be able to sew thru it just fine. It is the only brand I use.