I got my trem arm in the mail today which was missing from my new Legacy, and although I set up the guitar (I think) properly, the tuning with the DF vibrato is anything but stable when using the bar at all. I can do light flutters without going too far out of tune, but my G and low E strings go WAY out of tune sharp, and the rest go a bit sharp when pushing the bar towards the body, and vice versa when pulling away. I have lubed up the nut and string tree and stretched the strings some more to no avail. Anyone have any guidance? Here are some pics.
Back cavity + claw:

Bridge parallel to the body:


With the arm in:


Any help would be greatly appreciated. Thanks!