What pressure are you running at? Those balanced valves are usually setup to run at a pretty low pressure and tend to do odd things when over pressured.
I haven't had much experience with the Azodin regulators, but the Spyder VS2 had a similar valve (though a different layout, balanced at the front of the valve pin instead of at the back), and had really crappy regulators. Most of the issues with those were fixed by putting a better reg on the thing.
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