Xcalibur, I am new to socks also, and have actually completed one pair except for closing up the toes. (Actually I have completed two pair, but tore the first
pair out as they were way too small.)

That loose place between needles is called laddering, I believe, and I found it helps to pull the yarn tight just before taking the second stitch. You will feel the work snug up against the previous needle. I have no idea if this is an "approved" practice, but it's what I do!

There are other very experienced sock knitters here, so maybe they will correct me or add more help.

I have also read that there is less laddering when you use 4 needles rather than 3.

As for the fuzzy yarn, I would say you will have to be very diligent about tallying your rows since they are hard to count. Counting rows and stitches makes my eyes cross, but I do find it is easier in the best light possible, like daylight through a window.

Good luck.

Try pulling the yarn tight after doing the second stitch on the working needle as well. You tightened the first stitch but it loosens up when you do the second. Also try tucking the needle you just finished under your working needle.

There's a previous thread from a while ago on this. I've attached what I think is the link, if it doesn't work for you, go back to about page 7 or so, look for a title like "stitches too loose on dpn's"

Good luck - it's really not all that hard, once you figure out what you need to do.

Here is a link that might be useful: loose stitches email thread