1/16" might be a little tight, can you adjust that up a little? 90 psi from your compressor is right, but your machine regulator needs to be set quite a bit lower. Somewhere around 60-75 depending on tip size for that torch as I recall. Did you get the flow setting gauge with that torch? Also 35 amps is pretty low for quarter inch, you might want to crank that up, if you have the large tips.