Problem solved!? The bloated stars were related to pixel size and the central obstruction on the C8.? The pixels on the ASI462 are 2.9um and with 2x2 binning they are still very small causing over sampling.? I tested with a ASI174 mini and the guide stars focused well with FWHM around 3 to 4.? The improvement in FWHM allows PHD2 to make a proper centroid estimate. Guiding improved from 1.0 to 1.3arc seconds to 0.5 to 0.6 arc seconds.
Thank you all for the help.
Greg