Mine out of the box was exactly the same Mike, very disappointing. I didn't do any mods at all, just set tensions and lubed. Initially I fully dismantled and lubed the 2x2 core with Maru lube. I then set the tensions of the 'shells' at about a full turn back from fully screwed and lubed the covering of the shells, including the edges of them with a thin viscosity shock oil.
I have since played with the tensions as as it had broken in more and more the shell screws are set to fully screwed without the screws being tight if that makes sence. It was more trial and error than anything. Others may have more informed advise for you but this process seemed to work for my cube.
