Desperate for help!!!

I'm having major problems with this machine, it's a Toyota AD860 and its having problems picking up the thread. I'm pretty sure it's hook timing but I've tried and tried and tried to get it right but obviously I'm doing something wrong. Here are pics of what's happening. One is supposed to be a satin stitch column, then a pic of the back of the column. And then a pic of a design a friend sent me to try, it was the first thing I tried to stitch out and it got worse as the machine went on. Can someone please help with what the problem is and hopefully a solution? Thanks guys.