First, do some reading on here, most of your questions have been answered in many threads. Use the search.
The MOISTURE and CO Problem is cause by your draft, did you set it with a good fire burning at about .04 on a draft gauge . The setting on the weight are only approx, you need a draft gauge (manometer) to set it correctly. NO Doors on the stove should be open to set the draft. It should be air tight. The port should be taken somewhere in the pipe close to the stove.
Your flames sound about right, they will be 3-6" high when fully burning. Get a Magnetic stove temp gauge and put it on the front, that will give you an indication of your temps. I have had my highfire I up to 550 degrees on the front! with no problems, they kick out the heat.
Your max might need to go up a bit higher, I think the standard is around 40 for the LL stoves. Depends if you are pushing hot coals off at full burn and FR (FEED RATE =99%). if you still have 1-2" of ash at full burn, bump the MAX up a couple points.
MAKE small adjustments, coal take time to respond.
Read the COALTROL section for V3 Features, explains many of the features.
Ash should look like Granola pieces, red or grey ash.