I also had trouble programming my Hydra 120 esc to my basic AM SV27 radio. During the third step during radio programming the esc would not recognize neutral. After trying several times it finally recognized and beeped. I am thinking there was some type of radio interference (cealing fan or other electrics maybe) in my house preventing programming. Take your boat and radio outside in clear area and try again.

I am also getting some minor glitching that was not there before I started using the 120. Moisture in receiver maybe?