[Elecraft] "S" meter set-up oddity

[Ron ZL1TW]

Hi all,
         I have a set-up oddity here that perhaps the gang can tell me if I
am right or wrong in my method of "fixing" it.
Recently, for no good reason, ( other than burning solder)I bought a set of
14 matched xtals for my pre-3000 series K2.
The extraction and installation went OK with no drama, and I earthed the IF
xtals with 2 earth leads soldered carefully low down on the xtal. I also did
similar earthing on X5 and X6, but with just one earth lead.
I fired the radio up gain and re-set my filter settings with Spectrogram,
and there were no great changes to the shape of the waveforms, except the
base of each plot was 5db lower (better) than plots I took before commencing
work. ( I used a program called PlotSpec to get accurate db/freq graphs)
At this stage it was pretty obvious that I had a heap more IF gain. The set
was much more "lively" and easy listening is now obtained with the volume
control set to about 7 oclock.
Now for the oddity......With the antenna off and in LSB I would show 2 bar
graphs of "S" meter showing, 1 bar graph in USB and none while in CW. No
amount of juggling S LO and S HI would fix it.
In the end I found I could "balance" it out by adjusting L34...the balance
being found 2 turns from the top.
The "S" meter now shows no display with the antenna off, and a couple of "S"
units with it on in USB, LSB, and CW.
With the antenna off and tuned to the 7.000mhz  (CW)"birdie", the "S" meter
is just flickering.....so I think it might be set pretty well right, but I
don't recall reading on this Reflector before about "balancing" the S meter
using L34, so I have to ask.......have I a problem I am masking with such an
adjustment??
Another thing......where the heck did all my IF gain come from?......did I
have a crook xtal before?...or have I shorted one out in cct now ? ( in
which case I would expect the filter shapes to look strange).
I would appreciate some input here.......In the meantime the set is going
fine. I worked G3XRJ and WH6ASW on 80m with it last night so it can't be too
bad.....
Cheers.......Ron ZL1TW