Vibration in fluid trainer - OK?
That doesn't sound good...  My fluid trainer has a pretty steady increase in resistance as I gear up.  The noise also increases steadily with resistance.  But there is no "wall".  Vibration isn't really noticeable while on the bike either.  It's normal for the fluid to heat up quite a bit -- it's what absorbs much of the energy you're putting out -- and the fins on the casing can get hot enough to burn after a long workout.

Can you get it checked out by the shop you bought it from?  The fact that your tire is slipping sounds like something might be wrong with the unit (could also be the tire skipping on the roller that causes the noise/vibration?).