Seems really odd that the chain is dropping between rings (is the inner ring installed backwards?). But I will add my voice to the chorus and say get a compact FD. I had a regular centaur 10 speed double on my bike with the correct FD and when I switched to compact I didn't even mess around I went down to the LBS and bought the century grey compact FD to match. Even still it doesn't shift great. I should actually try tweaking it before the next ride.
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1 Super Record bike, 1 Nuovo Record bike, 1 Pista, 1 Road, 1 Cyclocross/Allrounder, 1 MTB, 1 Touring, 1 Fixed gear