I know this was several years ago that you posted this, but I figured someone searching for an answer may stumble upon this and wonder how to fix it. You have to re-calibrate the machine for the small and large frames. Basically what is happening is the machine's calibration isn't precise and it is getting confused on what frame is on the machine when the hat frame is put on. Once you re-calibrate it, it should work without a problem. It's been a few months since I had to do that, so I don't really remember what to do, but look up frame calibration and you should find it.

I'm having the same problem...did you find out how to fix it. I need to get a job out and the Tech has not called back.