Narayan, PHD with my ST80 and Atik guide cam has always needed cal step size of about 1000 to get the recommended ~15 steps.
Are you using v1 or v2 of PHD?
You a sure it isn't trying to guide on a hot pixel? Dark frames work better with some cameras than others so you could trial both ways.
Slightly defocused stars work better than absolutely sharp ones.
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