I used it my first year - the only reason I don't use it now is the price. To your finger tips, it will feel dry - but if you touch the back of your hand to it - you should be able to feel some moisture.
Watch the eggs, if they start to dimple early on - I simply added a TBS of water to each corner of the tub and it was fine.
I had no problems with Hatchrite.
I now use straight Perlite, and I mix it to roughly the same consistency as the Hatchrite. I also put my eggs directly in the Hatchrite or Perlite, have never used a light diffuser. In my 3 seasons of breeding, I've never had an egg go bad.