Mit, you are on the right track, but you may want to look at the # of links you have dropped. Most hitches recommend dropping no more than 3 links. That gives enough length on the chain to allow for tight turns. You probably need a little more pitch on the head. I would start with 2 washers and see what happens. Remember, when you are tightening the bars, the higher the tongue & ball, the easier it is to tighten the bars. When you have full weight on the bars, they should be even with the A-frame. Yours are way too high due to the # of links. It has been my experience with the last 3 trailers and 4 trucks that there will always be some squat on the rear end, and is considered normal and within range from the truck manufacturers. I too prefer a little nose down on the trailer. It helps prevent sway. One sway bar would be a good idea, and they're cheap. Equalizer has a good web site with instructions and diagrams for installation. Let er squat a bit and go and enjoy!