uneven stitches sewing machine

Tension problems with the Singer Simple?
I'm visiting my daughter in AZ, and she has just purchased a Singer Simple sewing machine from Walmart. The preset upper tension is set at 4. The problem is that the bottom tension appears to be too tight and there doesn't seem to be any way to adjust it.
The result is that the bottom thread is too tight, and the upper thread too loose on the underside of the fabric. It was binding and catching the threads completely in the bobbin housing before I took it apart to make sure everything was assembled correctly.
I have adjusted the tension back and forth, and even at the maximum of 9, the stitching is still uneven.
I worked for years in alterations and have torn down and put back more machines than I can remember. I am totally out of ideas. Has anyone else had problems with the tension on this machine?
Could it be a thread issue? Is it lumpy?
Was it threaded with the presser foot down? Is there crud in the upper tension? Are you sure it's threaded right?
If so, I'd take it back and replace it with something a whole lot more reliable. Have you seen the machine reviews on http://www.patternreview.com ?
http://www.threadsmagazine.com/item/4302/understanding-thread-tension