Gaui Not Real Smooth - Gains ??

Hi everyone,
Just completed the build of my Gaui 500X with 960kv Scorpion motors and Gaui 18 amp ESC's. I'm using a Spektrum DX7 in Acro mode with the AR7000 receiver and the Woo Kong Flight Controller. When connected on line to Woo Kong, all stick movements and controls are fine. I re-programmed all ESC's before install too. Here's my problem: When the craft is held above my head all motors start evenly EXCEPT # 3 - it eventually catches up. When the throttle is increased to 40% or better it feels like the craft wants to hoover and will auto correct when tilted in any direction. All motors sound and feel great. If the throttle falls between 10% and 40% (approx), it feels like motor(s) 1 and 3 pulse causing oscillation. Is there a gain I can reduce to see if the conditions improves? I believe when just spooling up on the ground I had 1 red LED flash then it turned into a white LED flashing often.. What am I doing incorrectly ??
 

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