If your peaches are small, it means they are not being thinned enough and that could be the cause of your other problems too. Try one peach per branch this year and see if it makes a difference in taste, because Red Baron is supposed to be top-rated for flavor. Are you sure it's a Red Baron? Their flower color is unique, a magenta-rose color.

Carla in Sac

What Carla said, and is the tree getting full sun? Sun=heat=sugar.

I bought the tree as a Red Baron and the blooms are reddish/pink and resembles an azalea bush. We live inland in San Diego so it gets lots of heat and full sun. We planted it in new soil that had been amended well. I do thin the fruit on the tree but can take a lot more off. I have been very disappointed with this tree because it came with rave reviews.

That sounds like the real Red Baron!
Whatever you do "more water" is not the answer! Fruit gets sweeter with water stress 4 to 6 weeks before harvest, meaning withholding water until almost drooping. Putting on MORE water will wash out any sweetness. But I think if you thin to one peach per branch or one every 24 inches, it will definitely improve your size and flavor.
Let us know the results this summer!

Carla in Sac