Get yourself a parma audi R10, I think you find it much easier to drive.
When I ran the dome, I ran a big wing on it to settle it down, we made some wickerbills that had a flap on them that was double in height. But I think the parma will be better.
Ever since I switched to the parma body, the dome feels very twichy.
Go back to 500 wt oil, I think heavier oil while making it less twitchy hurts your traction problem.
Utilize the highest shock setting position in the front, with the kyosho silver springs. Put the rear shock position in the 2nd from the bottom, either Mugen white or the new Kyosho white. After you change the the rear toe and camber, if it's still loose go up to the 3rd from bottom on the rear tower.
Run the fixed rear bar, unless you can get an empire bar. The Kyosho blade bar has too much slop in it, and causes the car to be loose.
If the car is still loose, start standing the front bar up a little at a time.
Also make sure you have pleny of ride height.
37's should be easier to drive than 35's, if you are comfortable with 37's stick with it. But if the traction is that low, you would be better off with 35's.