I can't help, but will put you back to the top so someone can.

Welcome to cute!!!!

Are you stitching the design at high speed? Try slowing down the speed. Could the bobbin not be catching the thread properly at times? A good cleaning and oiling for the bobbin area might help.

Do you have a home machine you could test the design on to see if it does it on a different machine?

Marcelle
http://embroideryavenue.com/
http://embroidery.gotop100.com/

Any chance you could put a picture of it here? I'm not sure why you would be getting loops just on the edges. And are the loops on the top of the design, or the underside? It could be thread tension. Just a thought, are you sure you're not sewing out a "fringe" design without realizing it? If you could give us more information, we could help more. And by the way, Welcome to Cute!!! Hugs, Marji

I had something similar happen loops on the top of the design on the final stitch, I changed the tension loosed it and it did help but didn't solve it completely, I even changed to a new needle, so I hope someone has a different solution, so I can test it out too!