I am using the 5 watt power output, and I am using my radio outside. I do have the stock antenna on the radio.
And the 4/7/13 position was from when I was sitting right next to the repeater.
Not knowing what kind of coverage you have in your area - I'd try a better antenna first. It would appear that you have everything configured properly, since the digi / igate picked you up. A better antenna can't possibly hurt, and should help. I just use one of the hershey kiss type antennas with a big red bee, and have no problems at all.
Ed - KD0BKH