Hi Allison;
The set up you describe is actually the most commonly found on the #8. The bobbin case with tension spring is on only a few very late #8 machines.
First & foremost it is very important the bobbin is inserted in the proper direction. When placing the bobbin in the machine the thread comes off the bottom toward you, so when it is picked up it comes to the top in Front of the bobbin. A #8 simply will not sew if the bobbin is reversed.
A couple of other things to look for is if over the years either the tension or the fit of the holder has been tampered with. The bobbin tension is adjusted by the little knurled head screw you see at the end of the bed underneath the rear of the bobbin cover plate. This screw controls the fit of a bar which goes across the hook. The bobbin thread is not under constant tension, tension is applied only during the short interval needed for tightening the stitch. With the bobbin installed & thread picked up you can turn the machine slowly by hand & find that spot where the tension is applied. If you have a good sense of feel as to what the bobbin thread tension should feel like you can pull on the thread at this point & determine if it is way out of tension, either too tight or too loose. Adjust till it feels good & then of course final adjustment would need to be done with actual sewing.
The other thing to look for is if the bobbin holder has bee set up too tight to the bobbin case. As the thread is picked off the needle it must be able to travel smoothly across the bobbin case, between it & the holder. If it is too tight & binds there thread breakage is the result. When the holder ring is raised to secure the bobbin there must be enough looseness for the thread to pass around it. At the base of the bobbin holder pointing toward the bobbin is a screw with a flat on the end. Turning this screw in or out adjusts the fit of the holder to the case.
If all of this seems proper & you are still having problems do feel free to ask further. The only time I ever had a problem with my #8 was at a TOGA one year & I got mixed up & kept putting the bobbin in backwards. As I said they simply "Will Not Sew" with the bobbin in backwards. This upsets the time frame at which the tension is applied & will result in nothing but big Bird Nests beneath the fabric.
Miller/TN