RE: Sealing surface gaps
I have many planes that I have not sealed the hinge gaps on. They fly just fine. As long as the gap is around 1/32 of an inch, it is not really a problem. I have flown planes were the gap was over 1/8th and it flew fine. About the only ones I seal every time are small foamies, not that hey need it, I just tape for the hinge.
It almost sounds like the thickness of the covering is binding the surface a little. Try this. Un-hook the linkage, us you hand and force it a little bit and see if it makes the movement better.
Dru.
P.S. I have to ask, are you sure you were using the covering correct side up? I have stuck the covering to my iron to many times now.