Agreed; I say disable that AVS and just drive it using traditional controlling and go from there.

I bought one of those Losi Mini Truggy's, and it came with AVC (my first experience with it). I took it for a couple laps around the track and couldn't stand it. It kept wanting to do it's own thing (driving off into the pipes). Dug through the Losi manual to find the disabling steps pronto (the procedure is very similar to the binding process). After disabling the AVC, the car was great to drive.

My .02. Please keep us up to date on your efforts.

The one thing that throws me off is you are saying it is tweaking the chassis when you are steering left and right with the radio - makes me think that the steering is hitting somewhere.