I am still messing with the position on my new Strada, and I have been leaning the seat into more and more of a reclined position. This weekend, after getting it pretty set where I wanted it, I have noticed the bike is getting hard to control, so much so that I almost lost it several times on the Trinity Trails where it goes from pavement to gravel.
 
It doesn't seem like I am that laid back, the top of my brain box bag is level with the ground and I've seen others that are much more horizontal than I am. I thought the whole idea was to get laid back to capitalize on the aero advantage.
 
I was wondering if there is a fix for this problem, or do I need to get more vertical?

Agreed -- which is why a more upright seating position makes the EZ-1 and others a lot easier for a beginner.  You're not only more reclined, your feet are up a lot higher, so your whole center of gravity is different. The "laid back" seat style typically doesn't work well for more upright positions - not enough padding for the rear end.  Ride at a particular recline that suits you for several times out, as you learn the handling...  as long as you're not having tailbone issues from sitting too upright. Then try lowering it one notch.  
 
When you want to change to more recline, shift one pin position, move the seat clamp forward about 1/4", and ride like that for a while, to allow your neck to adjust.  Whenever you change the recline, you should tinker with the fore/aft position as well, in small increments -- you don't want to feel like you're having to "reach" for the pedals at furthest extension.  Typically, when you recline more, move the seat forward, and the opposite when you recline less.
 
I typically have my Xstream 'hoagie' seat in the next to last pin hole -- but occasionally set it to the last hole setting (especially on a windy day), and can feel the change.
 
There's also the tradeoff between recline and climbing power, typically.  If you get TOO reclined, you tend to lose seatback support when putting power to the pedals.  So it's going to be your individual setting preference, especially since you DO have some back issues...
 
Take a picture and post it, showing how you've got it set up.
 
And remember, watch that heelstrike when trying to do a sharp turn!!!
 
Paul

I agree with all of your advice, but i feel like it's not a balance issue since I have had this happen on my other bikes. I find that if I get too far back on the frame, where my shoulders are at or behind the rear hub, then the bike's handling changes dramatically. The only way to describe it, is to say that the rear wheel feels like it's "kicking out" to the side as i pedal. If I apply power to the right pedal as I hit a patch of gravel or dirt, then the rear wheel jumps to the left suddenly in the dirt making the bike uncontrollable.  
 
I've done searches on the web and found others with the same issue. I think the bike may need to be a frame size larger to all ow me to recline without this happening.
 
I will post a pic to show what I mean in a few.

Quote from FlyingLaZBoy on Nov 10^th, 2012, 3:44pm:

 
You're right, I did learn my lesson after my last incident. If I see a change in surface or water on the road, I stop pedaling altogether and just roll forward until I get the situation scoped out. No, this happens when going in a straight line. I need an experts eye on this.

As you recline, the seat position typically needs to move forward slightly - because you're moving your hip joint backwards.  There's a fine line between overextending and not having enough leg extension -- once you're at the recline you like, make 1/4" changes in the seatclamp position until things feel "right"...  You may feel the difference more when climbing, especially if you're too far to the back.