These engines can certainly be frustrating. I do, however, feel you will thoroughly enjoy the helicopter once you get the engine sorted out.
I would wonder if the engine is running hot? You should be able to grab onto the heatsink after running it for at least a few seconds without burning it. If the engine runs well then seems to lose power and die, it is often overheating. You might want to take a look at the following thread.
http://www.rcuniverse.com/showthread...13&forumid=192
Give the engine a good once over and make sure everything is right inside and out. The peace of mind that everything is in order will help you get the last couple gremlins out of the system.
For what it is worth,
Spiroo