stump3r,
Here is a link to the equivelant of the Blade CX2 thread around here for the Falcon 40 / Walkera / Dragonfly #4:
http://www.rcuniverse.com/forum/m_48..._2/key_/tm.htm
I have some other info, but I don't have it handy. In my limited, mostly-unsuccessful flight time on the #4, I can tell you to keep your blade grips stiff, but not too stiff so that they can't bend. Then, before flight, pull out on the baldes to center them. You want to position the blades such that the flybar is balanced on both sides and is level with the skids. That gives you good starting balance. I also noted that there is a NOTICABLE gap in time between when you feed in cyclic and when the rotor disk reacts. It was perhaps this that made it so hard for me to fly initially. I may well move the flybar weight in and move to the longer swashplate links to make her a bit more responsive.
One thing, though: I am almost ready to convert the Walkera to 2.4GHz to run on my DX7. This will change flight characteristics a bit, so all I do may not be applicable to you.