I emailed the shop I got it from, and buddy said to get some crossman silicone oil, put 2 drops in the chamber and it should stop the dieseling. It's not combustible and mixes with the oil, which apparently takes a while to ooze out and can cause dieseling for quite awhile. Sure enough that did the trick.... No more loud cracks, sounds like an airgun now.
I still had the targets up from the first time shooting it, I only put 3 pellets through it as I didn't like the sound it was making. Without the detonations, I'm about 1-1.5" higher at 30m which tells me it's a bit slower but not too much.
I'll run it over the chrony tomorrow if I get time...wish I would have done that those first 3 shots lol.
This is the oil he recommended
http://www.crosman.com/rmcoil
It's a really basic gun, but shoots quite well. Zeroed it with the irons tonight and I was impressed. Sights are plastic with fiber optic inserts... Not super durable, but work fine. Trigger is passable... Reminds me of an SKS trigger lol.
Got her scoped now, really decent shooter, plugging a 2" spinner from 40m every time.