I definitely second the "too much of a good thing" theory - I personally use very little. For the 2 cups of water I hardly do more than rinse out the cap from the photoflo bottle (almost literally), and it works great. I have had problems with water spots that I don't think were related to anything other than the hardness of my water, though - so there is another thing you may want to look into (they are actually mineral depostis from what I understand), and then you may want to have some distilled water on hand for a final rinse.
Peter.
PS. I can't stress enough how careful you must be when trying to clean your negs - it is so very easy to makes matter worse in an attempt to fix something (guess how I know that...).