Jerf, I also had/have the same problems you have.
Was aok for 1 1/2 days, then gearbox failed.
They replaced it with a 6rpm. Not sure what came out but stove was new from last May (09)
I too now have squeaks but not sure if its slide plate or augar, but it started after new motor.
I also am going through about same as you for pellets. Was below zero up here in Norther Mn.
Unit is in basement blowing up the stairs. House nice and warm (mid 70's) and humidity is below 15%
Pellets are stored in basement with dehumidifier so I know pellets are aok. Friend uses same
premium hardwood pellert with no problems. Setting is 4 also for auger, but 1st day I was at 2 and it
was making a nice fine ash line like manual says it would. Now, can't find the sweet spot, but higher
seems to help a bit.
I am wondering though about your ash problems? Have you resolved that problem?
I get clinkers built up that can't get pushed out so I have to scrape em out morning & night.
Yet, the pellets will dance in the pot
I am venting through house chimney and tried opening up the Tee at the chimney as I thought
too much draft was causing the problem. Closed it again.
Later, I also opened up my dryer vent to allow fresh air into the house. A little air comes through.
I know my house is not that well tight...
Does not matter however, I still get them clinkers
Color is gray, not brown (flash seemed to changed it)
Actually looks more like this in black & white
Flames come from rear and angled towards the glass door than upward when it gets this full of clinkers
Clinkers will crumble easly
Also posting about this here:
https://www.hearth.com/talk/threads/46820/