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Thanks

Thank you. How does it relate to the Diff 1/1 output?

Pools do not distribute shares.
You find shares and send them to the pool.
Difficulty does not effect how long it takes to calculate the hash, you dont get "something easier to work on", you just dont have to calculate that many hashes before one fits given diff.

Your miners calculate hundreds of thousands of hashes per second. Those match a certain difficulty (and all lower ones).
You choose a diff and send all hashes matching at least that diff as shares to the server.
You tell the server which number is yours, and based on that the server can calculate your hashing power.

If you set a higher diff in the pool config, your miners will do exactly what they did before, they will not calculate more or less or easier tasks or anything.
Your mining client will just send less of your hashes to the pool, and they will be rated higher.

I cannot withdrawal my coins from the pool.  it has been 2 days since I crossed over the threshold but I am not being credited.  Is something wrong?

So what you're saying then is that the 1/1 shares have value at the cost of devaluation of the higher rated shares?

And is it mining?  Nearly ALL the pools give that error message.  It doesn't keep you from mining.

I am not quite sure i get what you are saying, but probably: yes.
If you submit 1-shares, you will submit more shares to the server, but they will give you less score.
If you set the diff higher, you will submit less shares, but they will score higher.
That way, your average score will always be the same.

Higher diff means more variance but less network load.

Okay, that is helpful to know. I'm still wrapping my head around all of this so I appreciate the responses.

kind of like how BFL is wrapping their head around all the people contacting their credit card company for non delivery, and getting their money back via paypal haha...