Balancing is we're you make the cells the same voltage, a 2cell lipo has 2 3.7v cells that are 4.2v when fully charged. Balancing makes sure they are both even. This is so when you run them, if your esc cuts out at 6v (3v per cell) you get both cells at 3v and not 2.8v and 3.2v.
I'm not sure about your other questions but I hope this helps you understand 'balancing'
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If you can't fix it with a hammer..... You've got an electrical problem! 
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