co2 in the beer is not a bad thing, in fact you need it otherwise your end result will be a flat draw.
edram helped me in my time of need and I would recommend his suggestions!!!
I would also like to add this ? for you - what is the temp of your beer? What is your foam like at 12 psi? You might have a slight problem which can be fully corrected by obtaining the proper liquid temp which should be between 36 and 38 degrees. Don't get the reading from the chill chest, but rather from a thermometer in a glass of water. Also, what is the length of your beer line? The length will provide you with either a slower pour or a faster pour depending on the co2 psi. From what I've learned here and on other websites the prime mark is between 100 to 120 ounces/min. Anheiser Busch recommends 1 oz/sec (for any of their products) - I've not yet done then math so I can't possibly tell you if they are the same.
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