The top thread must go around the tension disk, then up to the the hole in the takeup arm, down through the hole in the needlebar, and into the eye of the needle, from left to right, with the eye facing to the right. The bobbin should be setup as follows:
Load the thread tightly onto the bobbin. Insert the bobbin into the bobbin case so that the thread pulls backwards, from the right side. Pull the thread into the slot in the case, then underneath the tension spring, then through the tiny hole in the case, then through the hole in the top of the post in the case. Leave enough thread to pull up through the hole in the throatplate. Pull the thread up through the hole and seat the throat plate in its detent stud. Rotate the hand wheel to raise the needle, then raise the pressor foot with the lift lever on the back. Insert some material and lower the pressor foot lever, ensuring that the foot is in firm contact with the material. Spin the hand wheel towards (counter-clockwise rotation) you with some material under the pressor foot and see if it sews a stitch or skips stitches. If it still skips, check the spring on the top or back, to ensure that there is good pressure on the pressor foot.
Some things that will affect stitching on a patcher include all of the above, plus: wrong needle length, or size for the thread, to much bobbin tension, jammed top thread, or machine out of time at the bobbin. If the machine has gone out of time you should not mess with it, but contact a qualified repair person.