Very next game I won 11-0, with Mussina pitching a 13k no hitter!
So, I'm done running to the board posting results for a while.

I had up and down games since then. I discovered the ability to change the cpu change speeds slider the way Kevin mentioned yesterday as well, and setting that and the step influence to max has seemed to knock my power numbers down some.
Danimal, set the CPU offensive ratings up to or near at least all star settings, and make sure you really reduce the AI's 'good pitcher' effectiveness down to 25 or below. That should help them out a bit.
I don't think I'll be able to find a way to make the CPU a challenge offensively and still have them K, though.
The last game I played was a classic 6-4 win, Yanks over Boston. Players were getting plunked, both managers ejected, etc.