Jeff
If the peaks are moving on the spectrum display then your tuning is working.
From your description it sounds like you may be somehow listening to the IQ Output of the RXTX itself rather than the processed audio output of the HDSDR application. Make sure your headphones are plugged into a sound card on your PC and that sound card is selected in the HDSDR Soundcard selector RX Output (To Speakers) section.
You might also take a look at the Windows Sound control panel at the soundcard input that is connected to the RXTX Line In output. Make sure the tick box "Listen to this device" is unchecked.
When you get it right it will sound and operated exactly any other HF radio in your shack, allowing for differences in speakers of course.
Warren Allgyer - WA8TOD
