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...If I activate the TTI and test fire once from the TT1 the flash will actuate from the L358 every time. This isn't the reaction the documentation explains. My understanding is that it should communicate directly with th TT5, Correct?
It sounds like it is communicating directly with the TT5 after the initial TT1 handshake. Maybe that first one is required to set all the channels and such, but that's just a guess.
An e-mail to Pocket Wizard's tech support might get autoritative answers.