Bob Barry...
I'm with BigDog...the combination of spring and shock position is too light for running on carpet with foams...I think you might get away with that oil and spring if nothing is bent as has been suggested, and if you lay the shocks down to the inner-most, or perhaps number 2 hole on the upper mount. I hesitate to mention droop, just because different ways to measure. I measure with an associated gauge, and would be about 2mm in back, and 2-3 in front.
Give it a shot, try going stiffer and see if it calms that back end down some...say 70 wt oil and lay the shocks down...I dont know if I understood your rear toe setting...if running the forward lower hing pin mounts in the zero position, then try about 2 deg of rear toe in....
Jeff Werner...dont give up on it yet...trying to get a car dialed in can be frustrating...if you dont have the RW front and rear diff pullies, they will help free the drive train a lot, and they are pretty inexpensive upgrades (about $12 each I think??) Also, if feeling bound, check the center layshaft to make sure its not cocked slightly, and the spur spins freely. But from what I've seen most of the bearing friction is in the wheel bearings...good luck...
King-G...good show...I just spent the last week with a guy from Melbourne visiting the states...sent him your way today, with instructions to check you guys out. Looks like I may be headed down under later this year, so hope to come check out your track...G'day