Finally the part I needed

Finally the warranty replacement parts I needed arrived. Well actually only needed one of them. Turns out the ESC was causing all my issues. I tried flying it for 2 minutes around the basement. Then took the cover off and the ESC and motor were warm, not burning hot like before.

I'll have to charge up the battery and try again. Just to make sure.

Edit: Well spoke too soon. The thing is still heating up just as bad as before. I emailed a guy who had the same problem. Seems this is normal. Guess I need to do the heatsink trick and possible shield the wires some how. (or lengthen them and move them to the other side of the servos.)

Nope the problem is NOT a problem as I was told from HeliMax. It's NORMAL. I did fix it myself as best I could by cutting a small hole in the canopy and also installing a very small heatsink on the motor. The motor gets hottest during a hover but I have found it's not too bad as long as you keep the heli moving.