Dan,
Your settings look ok, but Id recomend you stick with low timing. Outrunner mode may help or it may not.
Are you running the newest firmware in the ICE? newer versions do start better.
Now to the key question - are you "sneaking up" on the throttle very slowly? That will often result in what you are seeing. Some motors just will not start or run smoothly at very low rpms and very low throttle settings.
If the motor starts ok when you just push on up to 1/4 throttle or so - even if there is a slight initial jerkiness - then I wouldnt worry too much about it.
A word of warning on Outrunner mode. Outrunner mode allows some motors to run waaaaaaaay beyond their max efficiency points. In other words, running outrunner mode may allow you to over load the motor well beyond where it would normally stop working. You could burn it up if its over proped.
My advice it to get and use a watt meter to be sure how many amps your system is pulling.
In most cases outrunner mode is perfectly safe. Its only if your setup is way over propped that you may have trouble.
Normally a motor will complain - screaching, loss of sync, poor starting and stuttering at full power - if its grossly over propped and your trying to push it way too hard.
Outrunner mode is a special mode castle came up with that allows the motor to keep running smoothly even when grossly over worked. So its a good idea to check before you run too much in outrunner mode.
Like I said - in most cases its not a worry and infact it makes many outrunners run a bit more efficiently and with a bit more power. But its best to be safe