The settings for the both the Boussinesq approximation as well as for the viscosity looks OK. If you deactivate the checkbox [i]Invoke Boussinesq approximation[/i] you automatically adopt the Extended Boussinesq approximation.
Regarding numerical instabilities I would like to draw your attention to a previous discussion:
http://forum.mikebydhi.com/index.php/topic,2263.msg5242.html#msg5242