Sandi, I am also new to machine embroidery, and was having the same problem as you were. I must be pretty fearless, because I started tweaking with the upper tension, and couldn't get it to look to my satisfaction. So I started tweaking with the bobbin tension. It took a half turn to the right (right, tight; left loose) to get it to my satisfaction. I showed my example chart to my dealer, and he agreed that I had done the correct thing. So bottom line, even if it is fresh from the factory, it still may need some tweaking!
Maggie in E. Central Illinois