RE: balance off - down thrust or try again ?
The effects of a change in wing incidence and change in balance are independent of each other, so you should really only change one thing at a time. This actually applies to all aspects of trim changes or you will lose your way and never get to know what the problem is!
I would recommend you change the wing incidence (1/8 inch strip under the trailing edge is ample to start with) and use the balance point recommended in the manual. Any change to the balance point can be addressed when the alignment problem has been solved.
-David C.