Hmm...reading the instructions, it sounds like it should work, regardless of the servo reverse switch....is this new out of the box problem, or it was working, then developed this problem?
ESC SETUP
• Center the throttle trim knob on the transmitter.
• Connect the battery pack to the ESC, turn on the Tx, then the ESC.
• Press and hold the “set” button until both LEDs are flashing, then
release the button.
• NEUTRAL POINT: Leave the throttle trigger in the neutral position.
Press the setup button once; the green LED will flash.
• FULL THROTTLE: Move the throttle trigger to full throttle and press
the button once until the red LED illuminates (motor will not operate
in set up mode).
• FULL REVERSE: Move the throttle trigger to full reverse and press
the button once – the red LED will stop flashing. Release the throttle
trigger; the ESC is now ready to operate with your system. If the
motor operates in reverse when applying forward throttle, the throttle
reversing switch on the Tx must be moved to the opposite position.