Noticed a HUGE difference on how much I needed to turn the peg to tune it... then a couple minutes later tuned again... well then it went out of tune again, I'm just assuming its the strings relaxing since the note is going flat.
New strings stretch out as you play and have to be tuned more frequently. You can accelerate the process of getting to the point where playing doesn't have as much effect by stretching them, as Mike shows in this video:
Notice how the strings go flat after they've been stretched? That's because once they're stretched, there's less tension overall and you have to apply more tension to bring them back up to pitch.
Here's my theory about possibly why the string was going sharp, correct me if you think there is no way this is possible... a string that is over tightened, way too much, then loosened up to a C, once it gets a chance to sit will go sharp?
Once a string has been stretched, it doesn't un-stretch. Something external, like the string slipping in the nut or applying more tension with the tuner, has to add tension for a string to go sharp. The laws of physics don't allow it to work any other way.
Side note: Despite being labeled as, say, E, strings don't have an inherent pitch. Pitch is determined by a combination of the scale length of the instrument, the string's composition (e.g., steel or nylon), construction (e.g., plain or wound), diameter and how much tension you put on it. For each string and scale length combination, there's exactly one level of tension that will result in a particular pitch. Add more tension and the string goes sharp; reduce it and the string goes flat. As a string stretches, you have to wind more of it onto the tuner before it will pull to the right level of tension, but it will eventually get there or fail in the process if too much stretching has weakened it.
Bottom line: What you're experiencing isn't a problem, it's just something that happens with new strings. Get yours properly broken in and it will go away.
--Mark