Sorry to hear you are feeling rough Kathleen.
I'm not quite sure why you are feeling as you do and also the cause of the spotting.
However it is not right that an increase in oestrogen will prevent you expereincing adverse effects form the Utrogestan - if that is the cause. They only need to be balanced as far as the uterus lining is concerned ie the progesterone prevents the uterus lining from over-thickening from stimualtion by oestrogen, in a dose dependent manner. ie the more oestrogen you take, the more progesterone you need to prevent thickening.
If you feel the progesterone is the problem ie giving rise to side effects, then you can't really go lower. However it would normally be expected that you would experience more side effects from taking utrogestan orally than vaginally (not the other way round) - the vaginal route is recommended for women who experience negative effects from taking it orally because it has to go through the digestive system and into the blood-stream. Less is absorbed systemically from vaginal use - but personally I would make sure the vaginal tissues are plumped up with local oestrogen too - like Vagifem - to minimise any absorption.
A dip in mood might be expected also from decreasing oestrogen although the sore boobs aren't a symptom of this.
I don't really have ideas to explain your symptoms especially as you are post-menopausal - but if you have changed both the oestrogen dose, and the mode of delivery of the progesterone - it is bound to take a while for your body to adjust.
Just to say also if you continue to experience spotting I really would mention to your doc because although spotting is sometimes to be expected on conti HRT, it is as well to be checked out that it is only due to the HRT.
Sorry if this sounds vague and hopefully someone else will be along too!
Hurdity x