My 4*40 also tends to drop if I use the rudder to turn the plane during level flight. But it seems to work fine when "hanging by the prop", etc. I always figured it had something to do with how I set the fin/ruder joint when I built the plane. If you are seeing the same thing then maybe it is a tendency of the design.
I saw a response by Bruce Tharpe (the original 4* designer) to a post over in the kit building section earlier tonight. I bet he knows the answer!
http://www.rcuniverse.com/showthread...96&forumid=107]