I used dexron III, Everyone seemed to agree that was good. I did figure out a huge part of the problem...ya'll gonna luv this. It's seems on of my lug bolts on the back tire wiggled free and the nut and washer on the other side ended up inside the brake chamber. Well that's why my brake cable snapped when I hit a bump one day. It ground some shit up in there...but everything is back together and rock solid now.
As far as the jerkiness it's still slight, but there. I'm still riding it ten miles back and forth to work though...and it still rips along at a good even pace. I did, about two weeks ago, smash the pedal on a curb real hard; it bent the pedal back at a 45 degree angle. At the time I thought that might of messed some stuff up, but it just keep going. That's the one thing I like about this bike...it brakes down, I fix it on the side of the road, and I'm back on my way. Hondas, Kymco, all the others I've delt with recently you damn near need a full on car garage to work on them.
The real low down is that this is all new to me. I bought this ped off some heavy, bus driver lady in NC who had it leaned against her shed covered in lawn mower clippings and heavy grease. It's been alot of work and I appreciate everyones help...this Tomos needs it.