Yep, I was going to say tension too. Is the fabric you are sewing very thin? I find mine tends to do this with thinner fabrics. Also try starting your stitiching a little way in, not right on the very edge of the fabric where it can catch.
One more thought, are your bobbins specific to your machine? some machines are more particular about the size of bobbins (i think Singer is one that really like only SInger bobbins)
It came with its own bobbins that were full and already threaded when I opened it. It really is a mini machine, I mean tiny!
The bobbin lays flat not upright like a normal machine, does that change things?
I had the old machine serviced and when I got it home it was doing the same clunking bunching crap on me *sighs*. I think I might just be like Skye, not meant to sew
ETA: I changed the colour of the bobbin and in my very fancy sewing skills opinion, its actually the top thread bunching and it isnt picking up the bobbin thread....does that change things again?
maybe put a new needle in your old machine and see if that makes a difference.
with the bobbin laying flat, depends on what brand of machine you are using. some are top loading and others are front loading. sounds like your old machine could be a front loading one. otherwise maybe go to your local sewing machine centre and see what they suggest.
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