Hi Darren,
Best advice (IMO) is to leave the Positional Contacts Settings as per default in PilotAware, so that it passes all available data to SkyDemon, and set your preferred +/- altitude in SkyDemon Navigation Settings.
Don’t forget to enable Mode CS (+ Filter where you have a transponder) and Mode-S/3D (to get the new Positional Mode-S when you are near OGN-R Ground Stations). You don’t need to have ‘Show Ground Stations’ enabled, but I like to see them - especially if flying in a new area. Also I suggest setting ‘Display Traffic Info’ to ‘Alternate’ - see why below *.
Check that you still have ‘Show Bearingless Targets’ ‘On’ in SkyDemon and you might want to re-enable ‘Show Callsigns’ as SD now sets these to ‘Off’ by default.
* If you have enabled ‘Display Traffic Info’ in PilotAware / Configure to ‘Alternate’ - and ‘Show Callsigns’ to ‘On’ in SD, - uplinked FLARM Traffic from a Ground Station will display as ‘G’ and uplinked Mode-S/3D will display with alternating Reg and ‘M’ (for MLAT), which helps clarify what you are ‘looking out’ for.
Best Regards
Peter