Recurring tasks are constrained with a Start No Earlier than constraint and also have a leveling priority of 1000 - meaning do not level. You may have more success changing the priority (add the field to the Gantt chart view) to something below 1000 - the lower the number, the more likely it is to be leveled.
You'll also want to allow tasks to be split so they will not be delayed until all of the recurring tasks are complete.
And do not use leveling hour by hour. That is what is causing the overallocations when your resource isn't working a full day. Leave it at Day by Day.
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