Most likely a belt has broken.
The machine will need to be serviced.
Checked belt, it is in tact. Could it be that the computer blew out?
Without seeing the machine, it's pretty hard to diagnose...
However, you say it sounded funny while it was winding the bobbin, which indicates a mechanical problem (a gear becoming misaligned; something rubbing internally, then jamming the works when it let loose; etc).
If all the lights come on and function normally, but the machine doesn't operate mechanically, it's most likely a mechanical failure.
A computer would make no noise prior to failure, and the function lights would cease to operate normally were it a computer failure.
In any case it seems having a service technician take a look at it and getting it working again for you is unavoidable. Hopefully it's still under warranty.
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Were you able to remove the bobbin from the winding mechanism?
Check your manual in the Troubleshooting section pp 66. Sounds like the bobbin winder is still activated.
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CCEQFjAA&url=http%3A%2F%2Fjanome.com%2Fsiteassets%2Fsupport%2Fmanuals%2Fretired%2Fcomputer%2Finst-book-mc4800.pdf&ei=0xlxVfLBFc6XygSAg4HYCg&usg=AFQjCNGCPQc_wJyl_Ts_4bFZ-7M3hX1ZnA&bvm=bv.95039771,d.aWw&cad=rja
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