The rotors should cone up when spun up to flight speed. I can't figure out whey would have been tapping the frame while idling or unless you were performing agressive moves.

The Ti switch should be labeled on the left side of the Tx. Ti should be used outside in an unconfined area for best results. [link=http://www.rcuniverse.com/forum/fb.asp?m=3621880]Here[/link] is a post with detailed steps.