What ammo are you shooting? Mine worked just fine in both positions with the random NATO surplus ammo I was feeding it...I swapped the factory gas jet (1.45mm) to a PMM 1.4mm and it no longer cycled on the "not normal" setting. The manual (at least mine) never actually explains what the gas settings are, just that the 12-oclock position of the gas regulator is the correct position for normal firing.
I could probably safely put a 1.35mm gas jet in, but I wanted to make sure there was a decent buffer for the operating envelope of the thing.
If you check fnforum.net you'll see a bunch of people who either didn't adjust their gas jetting or put on super high blowback cans on their guns, wound up beating it up/cracking the rear of the receiver, and FN wouldn't warranty the guns because they weren't being fired with FN approved suppressors...all that with the gun in the "suppressed" setting.
I don't shoot mine with a can all that much, but when I do, I'm really, really cautious with it.