Thanks so much, I just took out the paper towels . . . fingers crossed !!I'd try taking the eggs out again for a minute (you really don't have to worry about keeping them warm for the few minutes it takes) and remove the paper towel. As far as I know, it's fine to leave the fan on. The lower temp reading might have something to do with all the evaporation going on in there. At this point, I don't think it's a terrible thing to be a couple of degrees low -- the chicks should be able to generate some heat on their own.
Not certain here -- I just had a pretty lousy hatch myself. Hopefully, someone who knows more will have a better answer.