Thanks for the suggestion of straightening the Der hanger., and yes that is something that I did replace.
Some more background to my situation. Got a new Blur LT about last September... The shifting was finicky from the start. I didn't expect this from XO der/shifter combo with the touted 1:1 ratio, I expected it to be very reliable, but the shifting would go out of whack relatively easily. Then it would be clicking and skipping, and the trail I ride on has alot of G outs that require you to dump a number of gears to get up the other side... If the gear skips and catches, you can blow apart a chain - which had never happened to me in 20 yrs of mt biking, but did happen on my very first ride with this bike/setup. Additionally, I noticed a hesitance to shift up the cogset to an easier gear when the rear suspension was articulating/compressing (at one point on my ride there is a steep hill and you need to get speed up and then dump about 3 gears to make it cleanly, but the point where I would dump the gears has a good sized bump/rocky ledge, and it seems that the rear didn't want to shift if I tried to dump the gears while pedaling over/up this approx 8" ledge... I never had this problem on My 1998 GT STS with full XT grouppo... I was surprised, because I expected the overall drivetrain performance to surpass the GT STS/XT setup and it didn't even perform as well. Then in Moab in October the rear derailleur somehow got sucked into the spokes just partway down Porcupine rim trail... The thing was completely upsidedown, but neither the der hanger or the derailleur snapped, so luckily, I was able to gingerly bend the thing back and got it setup to singlespeed on home, but it was a pain in the butt. I had the fancy cables that have the individual links and inner liner (Aztec I think)...
So I just now coughed up the dough to buy the new XO rear Der and put it back together (Yes I got a new Der hanger from Santa Cruz), and now I am using XTR cables and housings, so I hope that this alleviates the problem(s). I have yet to take the bike out for the first real trail ride, but that will be this weekend.
Bottom line is that I bought top of the line stuff and expected it to perform as such. To this point it hasn't, but I wondered if the problem is that the cassette and chain may be fighting the Der/shifter combo...
I really just don't want to eat another XO rear derailleur at over $200.00 bucks and was wondering if anyone here had any insight...