Hmm the bugger is, i definately have it connected up now exactly as you say, everything capped. But it still over boosts, infact it blew a boost pipe when testing, and ive just spent the last 2 hours putting it all back.
Im having some really odd behavior, after i did the corrections outlined above the boost was hitting 1.2bar ~1.24 when i had the boost controller set to 1.0bar. Thing is it was spiking like crazy between 10 - 15psi on the boost gauge / controler.
I then reset the boost controller to factory defaults, plumbed in my desired 1.0bar and then went out again. It hit only 0.84 for a few runs, then all of a sudden it over boosted to 1.4odd and promptly blew a hose!
(offside middle joint, bottom of the hard pipe). Most annoying, im 100% sure i have it connected up as you say now.
My boost controller is the Blitz IColor type r, and it was brand new (bought off a member but all packaged as new and not a mark on it, everything was sealed still)
I have the wastegate type set to "AC" this is correct right? the other option is "WG", but from what i read in the blitz manual here it should be "AC"
http://www.blitzperformancesales.com/techsupport/pdf/sbc_i-color.pdf