Hi Richard- I'm sorry if you were misinformed! You can definitely mount the Pocket Camera on the M10. I'm not sure why you were told differently, sorry about that.
Tom, from the first photo it looks like you have a very light and small camera at the very bottom of the tilt balancing rails so it will tend swing like a pendulum with the movi turned off. When i put my 5D (similar size) on the Movi I find myself close to the top of those rails. The camera should sit still when its tilted up or down and hold there (when the movi is powered off). A very slow leveling back to horizontal is OK I find, but if it swing back to horizontal quickly that is bad. Along the same thought line, the nodal point of a camera is generally the center of the lens and or film plane. This nodal point is generally close to the balance point of most cameras depending on lens etc. The nodal point axis on the Movi is the center of the tilt gimbals. In the photo, your entire camera is sitting below the nodal point axis of the tilt gimbals. Also I have found that a heavier overall system is more stable due to the stiffness of my body and arms. Steady cam guys talk of the same effect. The camera floats too much if its light and I find the movi floats in my arms if it is light. Steady cam guys will actually add weight to a light camera like a RED to their rig to give them more mass. Either way Balance is key. There are several excellent tutorial videos on the freefly site under "video" that show you this and other set up tips. Hope this helps although it looks like the time between your first photo and now, you have solved most of the problem. One more note is that I find my stiffness settings on my 5D are really low because the gimbals don't have a lot of work to do. Literally below 20 on the 3 axis. Again you want the highest stiffness settings until the camera begins to oscillate. A well balanced light weight camera takes very little stiffness and thereby work, for the gimbals.