UPDATE:

I tried a 4 cell battery in place of the 5 cell and there was no improvement. This is really frustrating because I've tried the same RX in my 1/4 scale aerobatic and the settup is rock solid!
The only variables I can think of in the Starfire is carbon fibre reinforcement(conducts electricity) and alot more servos. I'm using 10.
Horizon Hobby tech. said I may be overloading the RX but if I remove two servos(such as servos on a Y harness for flaps), the glitch remains.
Aptar,
I feel the same way. Hate to mask problems with a stronger antenna setup. With the antenna hanging out of the aircraft, I should definitely be getting good range.