Possible Problems w/KWv3's. Who knows them well?

[BLITZEN]

So I replaced all my suspension with the KW's as many of you recommended. They seem much more rough, so I think I may need to decrease the compression damping. Sound appropriate?

Also, today as I was changing into my Blizzaks, I noticed the helper springs on the coilers are completely compressed, as if they're acting like a spacer. (see pic's) Is this how they should be? Are they meant to soften the top out? I can't figure it out. Thanks!