I'm running the same skimmer. First I see your drain tube is submerged but not plugged off. It should be capped off.
Make sure the pump is securely attached.
The excess micro bubbles is totally normal for this skimmer. However they will lessen with time and the higher you dial up.
I cannot see how you have your air intake hooked up. Make sure there's no crimp in it.
Oh and what's in the bag next to the skimmer? Certain products can/will make a skimmer go foam crazy.
Try dialing it up to 3. Could be the the notch says 2 but it looks like it's almost closed.
I have the drain open till it settles in and stops overflowing. Matrix is in the bag also. Airline is fixed to venturi bell and silincer. I took it off t silincer to see if it made a difference. It didnt http://youtu.be/Zls2LieUTOs
Cap the drain tube. At 3 it looks good. My skimmer sits in 7 1/2" and I'm dialed in at about 2 1/2.
Also give it at least 2wks for breaking in. Personally I wouldn't expect much out of it so soon. I've been running mine for 8 months now and my nog is yucky black.
It took a week to start producing foam. But I still had lots of micro bubbles. Today is week 2 I think and I just looked. Almost no microbubbles! I'm still trying to fine tune the skimmer.