It makes ALL the difference to have a decent grinder(i noticed this myself just recently..)
I had a "good" burr grinder that turned beans into powder if i wanted to, you mentioned you are getting "sugar", not fine enough for the Pavoni.
I tried to compensate the bad grinder with(hard) tamping, all i got was occasional "ok" coffee with the variety of burnt/"cremaless", watery..yuk!
I got myself the Minimoka(m-205) by Demoka(was like €250 where i live, but it was worth it!) and everything changed, now i do not tamp as hard as i used to(=i don't stand on the tamper anymore

), get a bottomless portafilter, you will learn to "read" it the tamp was good.
Yes, i still use the "crappy" plastic tamper that Pavoni supplies, i can do a decent job with it and i do not want to turn this immediately into a "gadget-sport", it's about the "Barista" "too"..
Get a good tamper when you get decent results with the crappy one(by then you know what you need or want).
Now my crema is rich, thick, creamy and lasts longer than the last drop of coffee, and now i consider my old "good" grinder to be a complete crap.
I have compared my machine to a Isomac Tea(actually i was thinking of getting myself one cuz this "Pavoni thing" was not kicking off) that a friend of mine has and i (and he..) would say that the Pavoni crema is richer, thicker & "tastier" than from the Tea(and now i will not give up the Pavoni, ever!).
Be patient, i spent like 3 months & many kilograms of (sadly, too good) beans til i got to the point i now only then & now get the occasional bad cup, i would not recommend the Pavoni for anyone without any experience in home-espresso cuz it might ruin the entire experience if you are not willing to commit yourself to "mastering"(i doubt anyone ever REALLY will..) it.