I use either a double or single lever paddle but do not use "squeeze" keying with the double lever paddle. When I first got the TX-500 (not sure what firmware version now), Iambic-B was the default. I had problems until I changed it to Iambic-A.?The "VOX Delay" setting that can be adjusted (menu item 15, as I recall). The default is 400ms in CW mode and if set to 100ms, it creates a "fast" semi-break-in, as they describe it in the user manual. I also have a PA-500 amp (Oliver at DIY599.com) and this has several settings that affect also CW timing/operation. I'm currently trying to get that dialed in to my liking.
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73, Norm/KC1BMD