Dont be concerned Eric....your not that far off.
Regarding backlash just leave it default at the moment...your the only one to see backlash...I have some backlash in my mount but if it's not to bad it's not a problem at all...play with the settings.
How about all the settings under guidescope...????
Whats your guide star doing...do you see it slowly return to it's centered position or does it go to far...you want the eroor corrections to be very small.
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