I recently ordered a spectrum, and to my surprise, it didn't work either....
First it took about 500 tries to get the TX module to go into bind mode, but it finally did.
Then, as others reported, my servo would go back and forth if I touched the steering. I was using a JR4735. I also tried NUMEROUS other servos and had the same problem.
BUT I FIXED THAT
Heres how.
I used a Novak 4700 mp capacitor and wired it to a servo plug and pluged it into the Batt/Aux slot on the receiver.
PROBLEM FIXED. The recevier and servo work EXCELLENT. And I have not noticed ANY lag time, infact it feels like the response is faster and more crisp.
I say to anybody who has this system and has had any related problems to try this modification. It made 100% difference in my car.