Hi, the upper looper is the part that gives least trouble on overlockers. 2 things to try, there is a lot of poor quality thread around at the moment, change the thread and also Toyota tension dials can't be trusted to be accurate! Turn the tensioner to a lower number so that there is only a small amount of tension when the thread is pulled through the tensioner. I've known some Toyotas tensioners to be on zero and still too tight! (they can be re set but you have to remove the front cover.
Robert of Liverpool, May 2010