My experience -- the 'bouncing around' is from poor seeing.
Yes, you are suppose to 'match-up' the two indicators - the last screen is for extra precise alignment - and it might not be necessary if you are doing low-rez imaging - and it might not be possible if your mount has poor alt/az adjustment accuracy or holding ability. With some mounts you can adjust to perfect alignment - and then when you tighten down the alt/az axis -- everything shifts. That's a mount issue, not a PoleMaster issue.
Using PoleMaster on a Win7 or Win10 laptop - I have found that it helps to use Windows' built-in 'magnify' feature - slightly different operation between 7 and 10 - but easy. Check your Win docs. I 'magnify' and shift PoleMaster into the magnified section of the screen for the final red/green thingie adjustments. After that is done just switch Win back to 'normal'. It really helps see the screen and with the adjustment.
Edited by George N, 18 September 2020 - 10:25 AM.