First off...CHANGE THE TITLE, MAN! For goodness sakes.
Well first of all, you are on track with setting 85. I think it comes from haas at .02"...so try that instead of your .005" - It will change the jerky-ness of the machine.
Next, make sure that the surface (right by setting 85) isn't on "finish". Put it on "medium".
And last - but actually first - make sure your filters are on big time on your
cam. Mastercam has some great filters that make all those little moves much smoother arcs so that slow, old equipment can handle it better...
Other than that, you'll only be able to get away with so much. The VF-4 is a clunky type machine with a fairly heavy table. Those tiny moves with a large table just punish a fairly weak machine like Haas.