I guess it could just be the hot break. When I added the DME there was definitely alot of foaming and clumps which I thought were the clumps of DME. The foam never really went away however and that is what worried me. Even after letting the wort cool there was still a layer of foam on the top. I couldn't really see if there were actual clumps still under the foam. I will say that I didn't notice any when I transferred to the primary.I haven't had the problem of LME not dissolving using a 2.5 gallon boil. I wonder if it's just the hot break you're seeing. I like the flameout addition method because then you don't have to bring it back to boil. It's especially good for a hop stand - it brings the temperature to around 170 - 180.