Hey Paul: 
Thanks for the help.  So my tub is exactly like yours (I also have to turn 3/4).  I am actually going to call the company about the swooshing noise tomorrow.  I will let you know what I find out.  I can't believe they would manufacture with this issue.  I mean its great spa, but for the price I would expect perfection.  It's near perferction but the noise is bothering me.  I hope I can get it fixed, if not I will just live with it and turn the dirverter 3/4.   
Claude