The build is solid with little flex, everything is secured well including batteries. I have it tuned pretty well in stabilize but when I switch to alt hold modes the motors pulse badly and the drone hops up and down a few inches. The motors get warm to the touch as well. I have tried many tuning variations and nothing seems to work. (see video and .bin in link)
Fly with the desired payload and tune for that weight.
If this is your intended fly configuration then you need to tune PSC_VELZ_ * and PSC_ACCZ_ parameters
The Throttle Accel PID gains convert the acceleration error (i.e the difference between the desired acceleration and the actual acceleration) into a motor output. The 1:2 ratio of P to I (i.e. I is twice the size of P) should be maintained if you modify these parameters. These values should never be increased but for very powerful copters you may get better response by reducing both by 50% (i.e P to 0.5, I to 1.0).
Thanks for the suggestions. The payload is simulated with a brick so the copter is already close to the weight it will stay at. Maybe a bit heavier by the time I add FPV gear etc. I will try changing the parameters you suggested and report back. Thanks!