Hi Jennifer,
I think that your problems arise from you storing your samples in 70%
alcohol. My suggestion would be to store in 10% formalin (diluted 1:10
if you are concerned about loss of antigenicity etc.) and start
dehydration in 70% alcohol. Your alcohol and wax infiltration times seem
short to me, but perhaps you are processing very thin samples. If not, I
would try increasing these times by 50% or more. As a norm I would trim
the tissue to slices not more than 3 mm thick and give 30 minute
immersions in the dilute alcohols followed by 2 immersions of 1 hr in
100% alcohol and wax.  Your xylol times look OK. If the problem
persists, I would trim the slices thinner, and start dehydration at a
lower alcohol concentration.
As far as the processor is concerned, it would be worthwhile checking
that your wax baths are not running at too high a temperature.
Hope that this helps sorts out your problem.
Regards
Alastair McKinnon