I tried to break up the post so I could understand it a bit more. When posting try to seperate multiple questions so its easier to read.
What was your question about set-up?
About the servo's, try moving the linkages in "1" hole on the servo arm. Also make sure your flybar paddles are level and that nothing is broken in the head. If you still have vibration probs, check the main blade balance again.
The Falcon 40's all have alot of slop in the main shaft, you could try putting washers in to get rid of the slop, I never did.