Fossoman, I dont have bl setup on my blade but i believe that it is connected directly to the batt & motor and then to the Rx, correct??? If this is the case then it seems to me that it can only be a radio prob or a bad esc. and since you say everything works fine in standard rate mode on the gyro. then it is maybe some sort of interferance problem???? It is really hard to say nothing about the situation really seems to make any since. unfortunatley it could be anything at this point.