Hi Gord, ship hulls are a quite advanced and difficult area, it's not a simple task.
It's probably best to use the Loft style = Loose option. If you try to use a regular loft that makes the surface go directly through every section you will need to have a smaller amount of changes between each section. Having a lot of sections while simultaneously using the "directly through" style, with some sudden changes will result in a stressed surface like you are seeing.
Do you possibly have an image reference of what it is supposed to look like?
