I'd recommend against distilled water! I'm pretty sure you need the nutrients and minerals in spring or other water for yeast prolification, whereas distilled doesn't give it anything to work with.
Besides that, it all sounds like good advice. I'm grappling with similar issues right now, with a persistent off flavor... best wishes.
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Browncouch Brewing
Primary 1: Lucky's Wheat Ale (1.0)(WLP 320)
Primary 2: Lucky's Wheat Ale (1.1)(Wyeast 3068)
Bottles: Tupelo Mead, Berry Porter, Mt. Hood Single-Hop Pale, Toasted IPA, Honey Oat ESB, Lucien's Amber (1.0)
[B]On deck: More Lucien's and more Lucky's.
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