It's good that you figured out how to launch. Mine launches with a straight and level throw. If I try to throw it up, it loses speed/lift and falls. Half the time I could recover it, but since I was shown how to do a level launch it has worked much better. I originally was taking off from the ground, but I oiled the axles and the wheels fell off on the first takeoff. I guess the oil got into the white retainer and loosened it. I found one, so I will need new landing gear. I forgot about relaxing the rudder/elevator controls. I did that my second time out and it really helps my overcorrecting. I am still having problems with reversing elevator controls when I reverse rudder controls. I cannot seem to seperate the two. FMS is helping though. Did you get the T-hawk model for your FMS? Try here.
http://gunnerson.homestead.com/files/fms_models.htm I am not sure about the prop wash theory. It makes sense. I also suspect that yours being shorter has a little more influence than mine. At least, til I break my tail boom....