The small round filter is not in the right place, it needs to be pushed up on the underside of the shampoo tank inside the plastic hose. The small round grey piece with the screen, is what creates your foam if it is in the right place. Make sure it doesn't fall down into the hose, because that is what causes more water use and the 3" wide trail of foam. It has to stay put up on the underside of the shampoo tank. So secure the filter piece first then re-attach the hose. If you notice the foam lessening again, then your filter piece has fallen into the hose. Hope that helps!
m. vogt, October 2006