That is the way my castle 35A arms.... throttle stick up,connect batt. 2 sets of tones move throttle down third tone and ready to go.
I guess his throttle curve could be backwards i've never had that problem.
My DX-7 will alarm if you try to power up the raido with the switch in stunt mode.
don't know why the esc would be hot, mine is only a little warm after 6.5 min of flight.