grubs4flyn,

read the last several pages of the official bcpp tread: http://www.rcuniverse.com/forum/m_45...page_35/tm.htm maybe this can offer you some encouragement.
I was about where you are at starting to think this is just not fun anymore.... then I got my heli dialed in right and it was like a whole new RC. I had damaged parts from all of my learning of hovering and didnt realized how sensitive each aspect of the setup on these things can be. they are sturdy but if your learning curve is even close to as bad as mine was you have put a pretty good whoppin on your heli.

as far as your gyro probs:
if you suspect binding look for it everywhere... free up your swash from the servo's and move each and every thing by hand to feel for any binding....I made the mistake off overtightening the screw on the mixer arms before and it made mine fly like junk.
Also it sounds like possible radio interference.... check your wire routing to keep power wires away from servo wires.
try disconnecting the gyro and using stock for a test to determine if it is definately the gyro or gyro settings.
go through your gyro setup exactly as the manual says and start with 40-50% gain and adjust as high as possible without getting any twichy behaviour.....
try some tests also with the main motor unplugged. just giving throttle and rudder inputs and observe...maybe something will reveal itself...