I think maybe I was setting it up wrong. I found a video over @ runryder that clearly show the setup. The basic idea there, is set the gain to the lowest setting, then adjust the propo. I'm guessing I had the propo wrong, and was using too much gain to compensate.
I'll give this a try later and report back, but for now I gotta get some work done. (in order pay for more toys)

BTW: the guy @ the new LHS I found (who's a pretty advanced heli pilot) told me I could avoid most glitching by unwinding the receiver antenna. He said the 'coiled around the strut' thing is a BAD idea. Got it running down a long plastic tube now.

Also put a ferrite ring on the main motor lead, just for added peace of mind.