Your numbers are great. You didn't post your cya - this is what will determine how high you need your chlorine. Chlorine at 1 - 2 is ok if you have almost no cya. Here is a good chart to follow, there is a sticky at the top of the chlorine forum:

Use the info in this chart to help you figure out what levels of chlorine you need to maintain in your pool based on the amount of CYA (cyanuric acid, also called stabilizer) that you have in your pool. (FC = free chlorine)

Stabilizer . . . . . . Min. FC . . . . Max FC . . . 'Shock' FC
=> 0 ppm . . . . . . . 1 ppm . . . . . 3 ppm . . . . 10 ppm
=> 10 - 20 ppm . . . . 2 ppm . . . . . 5 ppm . . . . 12 ppm
=> 30 - 50 ppm . . . . 3 ppm . . . . . 6 ppm . . . . 15 ppm
=> 60 - 90 ppm . . . . 5 ppm . . . . . 10 ppm . . .. 20 ppm
=> 100 - 200 ppm . . . 8 ppm . . . . . 15 ppm . . .. 25 ppm

As far as the suds go - I think they will be gone soon, as long as everything is good with your filter