The iterative methods are tricky, but when they work the results are good. I would not set the initial guess, switch to "iterative-gmres" as it is more stable, and set "use_rcm=1". The other settings should be set to their default values. If you get a preconditioning failed error, try increasing the fill_factor. There are new iterative methods in the github master, and if you want you can download and try switching to "power-bicgstab" and see how that goes.
Paul
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