Janson,
I don't have a 700 I have an 8000AP, I can't help you with the toner coming off. I just don't think it would be "normal" in my opinion. As far as registration the CED is the "Bible" when it come to what the machine will and will not do. If it states .05mm than that is what you should get. If it's not doing that, then Xerox is obligated to make it happen.