Aaron,
Is the material from small diameter logs?
Did you sort sap and heart?
Did you equalize (use about 175F and a 8-9% emc) ?
Did you condition?
These would probably be the key questions for the warp and MC variability?
The idea is to reduce the variability so you can get the average a little closer to 12% and have fewer of those boards at 5%.
Mike M.