Thanks for all the suggestions here.
To answer some of your questions:
1. Yes, I did a blackshade at 23.94 3K HD AFTER letting the camera warm up for 15-20mins. I blackshaded per current frame-rate/project size.
2. I agree the lenses arent the best. I have a 17-55 Canon f.28 coming (which is closer to an L series). HOWEVER, like someone said earlier, these lenses take great sharp photos on DLSRs at 18mp. So the glass cant be the whole issue.
3. I havent tried backfocusing yet. I will try that but there seems to be no standard way of doing that with the AL mount. Especially with the glass I have. I should get the new lens tomorrow or tuesday so I figured I might wait for it to do the backfocus.
4. I have tried lower compression ratios too, even going down to 3:1. Some at 5:1 but 8:1 seemed like it was still the standard compression for "good quality" results.
5. I have contacted RED. I sent them a trouble ticket Friday evening so I havent heard from them yet.
Matt, those stills are amazingly sharp.. and that is with no sharpness added??? That is absolutely nothing close to what Im getting! :(