Yeah the 649 Rx is a PCM unit, and the 8103 can transmit both FM(PPM) and PCM. In fact I use my 8103 for both PCM and FM aircraft. Wait 'til you hook up the gyro with the 9254 servo and see if the jittering gets worse. Anyway not all the R700 Rx's have jittering, just most do and mine was really bad. With a newer PCM Rx the servos will not jitter since the Rx can handle the feedback from them. Some of the newer FM Rx's can handle digital servos as well. The R700 was developed before digital servos came out so it was not desgined to handle them and consequently sometimes it cannot.

Sorry about the transmitter settings. I just didn't have time yesterday and I got home really late from work. I will get them to you over the weekend though. Do yourself a favor and really read and do your best to understand everything you can on raptortechnique.com. There is a wealth of info there. Some of it won't make sense until you start building the heli though.