I can't knit for beans

Help?  I usually live in the solid world so surfacing tends to elude me at times.  I'm trying to simply build upon a set of profiles created by ends of lofts.  From there, fill the surface and knit to thicken.

I need your help in that I can't seem to figure out why the knit shows up with heavy lines at the tangents.  They are tangent though.  Then, when I try to thicken, the lines carry forward and thus, no smooth surface.

SW2010 please, I'm waiting until my clients migrate

thanks

SolidworksSurfacing