Help!.. "Sewing Motor Lock error"

dx2olson@msn.com

Toyota 860
I've gotten a sewing motor lock error and have found that the lower shaft that spins the rotary hook to be tight. (The motor and upper shaft spin freely) None of the 3 bearings are hot on the rotary hook shaft. When I try to rotate the shaft by hand it feels like a thread build up. BUT I CAN'T FIND IT.... Immediately behind the rotary hook is clear. When I take the plate off that covers the rotary hook shaft, one of the oil spots is visible( the one closest to the rotary hook). When I put the tip of my scissors into the oil hole I can feel a spongy substance. Is there a felt wiper in the oil hole or is it suppose to be clear?????

My jobs have come to a screeching halt. I need advice. Any ideas let me know..

Thanks.