Thanks for your ideas - Very clear - no confusion at all....
The bobbin is dropped into the area below the needle. I have looked carefully for any sort of screw head which might relate to the bobbin and I don't see any.
The area around the bobbin does move - but I'm sensing that it's supposed to move just a bit from side to side. I tried to remove it entirely, it would not come out. I did sweep some thread dust out with my finger.
I have continued to experiment with thread tension. At 1,5 and 7 the top thread from the spool will easily pull out.
Weird idea here -
is that top thread supposed to be easily removed if pulled??? It would be ever so nice if it emerged that, in fact, I did not have a problem.

I did test the stitching by pulling hard on the material in a sideways motion. The light cotten fabric tore before the thread came undone.
One good thing from all of this fiddling around, I was not using one of the notches near the bobbin correctly, I did not realize that a horizontal slot was half a centimeter "deep." I am running the thread through there correctly now. It's good news, but not the sort which will solve my current problem though!