Closed loop speed control

I have an Astroflight 3220 motor (8 pole) with a US Digital EC-35 encoder that combines commutation and encoder (2000ppr). Open loop is fine and the encoder speed tracks what the motor is doing (Hall speed is 1/2 of actual speed). I can't get closed loop speed to work. If I put in KI=1 and give the motor any G command that makes it move it runs away to the max rpm (2000). The only way to stop that from happening is to put the ICAP in single digits, but I still don't get accurate speed control. It doesn't hunt around or anything, it just won't go the speed it supposed to. I'm using my old HBL1650 with current firmware, but I plan on using my new MBL1660s. I have a model boat with 3 water jets that I need to run matched at various rpms.

I did find a commutator problem; the ?BS was the opposite sign from ?S. Negative ?BS for a positive !G command. That is fixed now and all the signs are correct, but the closed loop control still runs away with KP 0, KI 1, and KD 0. The ?BS speed is half the ?S speed. It is an 8 pole motor because I ordered an 8 pole EC35 commutator kit and everything matches up on the scope.

BLFB is set to 1

I've been poking around and found the ?E query (I generally don't use Roborun+). The only way I can get closed loop to be stable is to set KP at 3 or 4, which I guess is .03 and .04. Anyway, if I set !G to 250 i get ?M=500 and ?E=500. I am in closed loop and it doesn't matter if I have feedback set to hall or encoder. ?F is alway 0 whether I'm using hall or encoder feedback. If I set !G to 125 then M and E go to 250. It appears that the controller isn't seeing the feedback, even though ?S reports the correct RPM.

That's nice to know, but doesn't answer my question; why does it appear that the encoders are working but the closed loop error is equal to the commanded rpm? The actual error is less than 100.