I can't see your thread path too well in your photo - thread's too light-colored. On your USB drive, there should be a document about the "New Controls" - there should be instructions on using the Thread Break Sensor in that document, if I remember correctly. In a nutshell, your thread path should usually be as follows: Up from your cone of thread into the first thread guide (this guide should be centered over the cone), forward to the three-hole guide under the Thread Break Sensor. Wrap around that guide three times, starting at the bottom - go through the bottom hole back-to-front, back around to do the same with the middle hole and the top hole. Then around the Thread Break Sensor, in the same direction as the arrow on it is pointing, then forward to the other three-hole guide. Go through the top hole in that guide, front-to-back, then back down through the last hole. Down to the tension assembly, around it (making sure that the thread is seated between the tension plates), over the check spring, down under the "shepherd's crook" thread guide, up to the take-up lever, down through the pigtail, around to the pigtail above the needle, then through the needle. Clear as mud??