Its REALLY important that your drive train is free and efficient -any tightness or binding is going to result in either a mechanical or electrical failure...
It sounds like you have tested your rear gearbox and its free. Is that the same for the front? If so, remove the pinion from the motor and fit the spur gear - still free? If so, it could be your mesh is too tight...you need a tiny bit of backlash. There are thousands of articles on how best to set it, the one I always remember was to insert a piece of cigarette foil between the pinion and spur, mesh tight and then rotate to remove the foil. This will leave a small amount of backlash.
For high grip astro, the kit springs might be too soft. I have run Dark Red and even Yellow on the Front, with Black on the rear. Kit pistons should be OK to get you going, I used to run 42.5wt Losi oil in the front and 30wt Losi in the rear. 10K/7K Front/Rear Diff oils should be OK.
The nose diving will almost certainly be due to the drag on the drive train; its like putting the brakes on when you come off the power. Sort the drive train and the nose diving should disappear.
HTH
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