Hi I've been a brittle T1 for 38 years. I was really anxious about pumping and had put it off for ages. It turns out that I was right to be anxious as I've had terrible allergic reactions to the pump. However, it's been amazing and I've been hypo free for a month now!
I was told that bubbles can be caused by the insulin being too cold. Are you refrigerating your vial? Also, check that when you fill up your reservoir, it's all upright, then the bubbles should work their way out.
In terms of your readings - are you sure you're carb counting correctly? I've gone back to basics and weigh a lot just to make sure. I'm probably teaching you to suck eggs, but it's worth saying!
Have your team asked you to fast? It's a good way to check if your basal is right. It sounds like you might have a dawn phenomenon, but you can adjust your basal to cope.
I kept ripping out my steel cannulas. The Teflon ones stay in much better. I used Cavalon cream which also helped it stick. Good luck!