Ok, getting much better results now. I think the problem was that I had too much offset between the ASL and my flight path. I assumed the bombs could handle the course change but, that was evidently an incorrect assumption. Thanks for the help!

The closer to the steering line you drop, the higher the percentage of a hit.

As far as setting things up, I will put the bomb aiming in AUTO mode as I ingress to the target (or as soon as time permits in the mission). I try not to turn on the MASTER ARM until I roll in or hit the initial point. Since in this sim you start on deck with the Master Arm already ON, I definitely make it a point to turn it OFF first thing (this is part of the procedure that my Warthog profile automatically takes care of for me).

Speaking of Warthogs, did you have a problem mapping the "Enter" key in TARGET?

TARGET does not see the "Enter" key when I try to map the designate function.