With 7mv/cell, you're telling charger to look for a 42mv rise (using a 6 cell pack as example) and that's obviously much bigger than a 4mv/cell setting would require (24mv). This bigger peak rise should mean charger will charge longer than it would have for a 24mv peak and this can overheat the cells. So yes, a lower setting would mean it would terminate earlier.

The objective is not to stuff mah into the cells, its to optimally fill the cells based on NiMhs characteristic voltage rise when they are full. 3000mah into a new 3600mah pac would not have caused me any concern. NiMh has a breakin and they should show a little increase in capacity thru 1st dozen or so cycles.

One thing I've always been told is to adjust sensitivity based on how hot the cells are getting when they peak, they should not be getting hotter than 120-125F. It does no good to pump a higher mah amount into the cells if you're overheating them and compromising cycle life.

It may be this is just diff for this charger (compromises in design of electonics capabilities to measure small voltages accurately), how hot were your cells when they peaked the 1st time?