I have seen the Shure M111-HE for sale on eBay. Thing is, I have some hesitation about buying NOS cartridges, mainly because I'm concerned about what kind of shape the suspension is in. Many of the sellers can't confirm the exact condition of these parts, and I've asked. If the suspension is worn by age, then I could end up with the same issue I'm having now. Though it is tempting, since I've read from some folks that these Shure carts can sound really good.
I am positive there's excess distortion due to mistaking/tracing. Increasing VTF didn't completely solve this, though it may have improved it slightly. Perhaps I do need to wait longer for the stylus to break in (though it doesn't seem to be getting any better yet). The SQ is good enough to ignore the distortion only on a few records. I have the sneaking suspicion that somehow, I should have a higher success rate with my vinyl playback by upgrading the cartridge and/or stylus.