I have to MJ powerheads, a 900 and a 750 (700?). Both also blow bubbles. I did two things which help reduce the bubbles: 1. Take them completely apart and clean them meticulously. I used a toothbrush to scrub all of the surfaces on the intake, the impeller, and the hole where the impeller spins. 2. When you're installing the powerhead, submerge them with the intake up (i.e. upside down), shake the powerhead a little to dislodge any air, then position them where you want it. For whatever reason, only doing both helped; doing only one or the other didn't do anything.
Now, I only get a very slight amount of bubbles when I start the powerhead. HTH