1) I was able to get one of my two fume hood families to work. Even though I followed the exact same steps, I couldn't get the second one to maintain the proper location of the EF family when flexing the parent family in the project. Solution, I took the working family and modified it and saved as.
2) Having a connector element in the nested EF caused all kinds of issues on the parent family. Since the EF is typically supplied by the Fume Hood manufacturer, I decided that the connector was not required for any future flexibility of the family as a whole.
3) Having spent the better part of a week messing with a Swiss watch of a family, I have determined that the workflow needs to be followed precisely, and rigorous testing of the family must be done throughout the entire development/modification process.
4) Once again, AUGI members (Alfredo) have proven to be an outstanding resource, and are very willing to help each other.
'When I am working on a problem, I never think about beauty but when I have finished, if the solution is not beautiful, I know it is wrong.' - R. Buckminster Fuller
Steve Stafford and Aaron Maller have commented recently that it is possible to connect to a nested connector, but my comment to that, as posted in Steve's blog, is that this is strongly not recommended, because the connector will be invisible, and only with a good amount of luck the user can find it after hovering the mouse around the whole family.