Your machine does have a thread guide just above the base of the needle. The thread breaking is caused by the thread not going down through the guide at the top of the needle bar. It's the little ring held to the needle bar with the top screw. The screw with the larger head on the bottom holds the needle to the needle bar. In the picture 2nd from the left, the red thread is going through the thread guide on the needle bar.
That piece of material in the thread guide is something I use in place of the felt that is standard. The material is called laminated deck skin. It has a really tough backing on it which makes it hold it's shape and last longer than the felt. It's main use is as a platform over seat springs. You can buy that piece of felt from a sewing machine parts supplier. I put sewing machine oil on it. I use quite a bit, but not enough to make it drip. In the picture on the far left, the felt is on the left, and the stuff I use is on the right.
No one lives forever, the trick is creating something that will.
Last edited by DanTwoLakes; 12-11-2011 at 08:07 AM.