Opportunity is missed by most people because it is dressed in overalls and looks like work. - Thomas Edison
triple check your thread path.
What needle point are you using? On knit I would run a ball point.
Besides slowing down as Inkman suggested, I always lay down a fill the same color as the knit hat to sew the design on top of. Looks a lot cleaner that way also.
Is this the size of needles you are using? Why so small? I use 75/11 with no problems, and I do lots of knit toques and beanies.
Wow just noticed what he is using. We do not use anything smaller than standard 75/11, we go up to as high as 90/14's My operator pefers larger needle for knit beanies and such. Out of curiosity what weight thread are you using with a needle that small?Is the machine giving you angst the only one running those needle sizes?