Wildherre,
In all honesty running with tracking on IMO does not have an adverse affect unless, you are after the really deep stuff. However I leave it off due to the fact that the ground here is fairly mild and changes very little. In areas with high mineralization and rapidly changing ground I would certainly leave it on. The settings you are using tell me the ground is not a problem, but the choice is yours.
As far as the averaging thing, I see enough of a difference on coins next to trash that I might not dig some signals that could be good targets with it turned on. I like to be able to see and hear the highest tones and numbers possible when targets are close together and averaging seems to knock em down a bit.
Tom