My experience with an 06 was good. It's hard to interpret your words, but "rattling around on me" doesn't sound like a shock set up issue to me.
Does the shock have any play when you pull on it sideways? ie, is it mounted correctly, or is there play in other pivots/linkages?
Does the shock have any play when you cycle it without any air pressure? ie Cynic-Als comments about the pushed system loose tolerance.
I would recommend you set up the shock as per the manuals. With that frame and your size, you will need the propedal setting (try 3) enabled on climbs or when you're stood hammering, but should not need it when descending or looking for a responsive suspension. I think your quoted air pressure is about right.
Use the o-ring on the shock to see if you really are bottoming out on the downs when you feel the rattle/bottom out.