the glitchy movement is from using auto depth. you want to use dynamic manual.
you should try the vertical charts instead of the wheel chart and use the graph on the left half of the screen.
mode 1 is for over 11 feet of water and deeper. you can leave it on either mode, but you have to crank up the gain on mode 2 for water deeper than 11 feet.
the reason you have to crank up the gain between cone angles is you are spreading that ping out further. think of a flashlight going from spot light to flood light. flood light can't be as bright because you spread that light further out to cover more distance. same goes for sonar pings.
the mode 2 is to help see your bait in shallow water is all. if you fish 20 feet of water all of the time like you are saying you do, then leave it on mode 1 and narrow band. narrow band keeps out data that may just be cluttering the screen that is useless likes weeds that might not show in the narrow beam.
i use narrow beam most of the time. the beam/cone angle uses different power levels simply by changing them.
like i already said, set it up how you like it, it's not set in stone on tuning it for your needs.
here is a write up of how to set it up and then tune it to your needs.
http://www.iceshanty.com/ice_fishing/index.php?topic=319913.0