This is Madeira poly thread.  I've not had a problem like this before.  Luckily I spotted it when I opened the door to do a thread change during embroidery but it was headed for the needle.  The thread near the needle looked fine and so I can't imagine it happened from a needle problem.  Using a Superior Threads #12 topstitch needle which I found works best with the embroidery I'm doing (Anita Goodesign's Patchwork Pets).  I don't know if it came off the spool this way and I just didn't notice or if it hit a snag somewhere on the machine.  I've done a cleaning and will watch the other colors closely now but am curious as to what caused this. Thanks. Ceil