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I came to the conclusion that the pulley is designed to be used (when used for a fair lead) utilizing the middle hole to dead end your climb line into, then using the bottom hole for your hitch.
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Thats what I do too. I like as little movement as possible before the HC engages the hitch. I want the HC to start advancing the hitch as soon as I pull on the climbing line. With the hitch on the bottom hole there is minimal distance between the HC and the bottom of the hitch. And I agree with Jimmy. Shorter, or no, splice and a shorter cord.
When using the system the Jimmy showed, both legs of the climbing line are taut as the HC moves the hitch up the line. If the eye end of the climbing line is in the top hole and there is a short cord/hitch then the eye can rest on the top of the hitch and prevent the hitch from grabbing when the climber sits back on it. Using the middle hole for the eye puts the eye a little lower so that it is less likely to engage the hitch. This also tips the HC backwards, away from the hitch, so again the eye is less likely to engage the hitch.
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Now when used this way, you have no hole to set your tether into.... top one will not work now.
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You can use the top hole for the bridge extension. Use two 'D' 'biners for the climbing line and slip an HMS 'biner behind the biner in the middle hole. Its crowded, but it works well.