The loopies on the back can be caused by: #1 threading can be wrong, tension is off or worse timing is off or the tensioner could be worn (not likely) #2 Needle not in properly, change it according to the directions in the book or online. I believe the flat side goes towards the left, but I am at work, so not positive on that one. The needle should thread from right to left.
#3 The bobbin could not be wound very well, or the bobbin case can be bad. When you place the bobbin in the case the thread should be coming off the top clockwise then run the thread into the little notch in the side of the case up to the top of the spring. The bobbin case could also be out of adjustment.
My first thought is that the upper tension is set too loose. But I would bet that the needle is in wrong. As soon as that is corrected, I would try the rest of the above mentioned adjustments. Adjust one thing at a time.