High quality diamond film wafers with different thickness are prepared by high power DC arc plasma jet CVD (DCPJ CVD) method using a CH4/Ar/H2 gas mixture. The effects of methane concentration on the growth of carbon balls in anode nozzle and arc stability are studied with theoretical analysis and experimental investigation. The results indicate that different sizes of carbon balls may rapidly grow in the anode nozzle with methane concentration higher than 2 Vol-%, symmetry and uniformity of the rotating arc are strongly affected with the occurrence of carbon balls, which will result in non-uniform deposition of diamond films over a large substrate area. The methane concentration should be controlled at a low level to keep diamond film wafers growth stable. Characterization by X-ray diffraction, Raman spectroscopy and SEM analysis are also carried out.