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[Brian H]

I believe the -IW indicated it came with two paddle sets. White and Ivory.
Are the lights incandescent or another type?
If they are not incandescent. Are they rated to be run on a dimmer control?
How many watt of power are the problem lights drawing?

[dave w]

I am having a similar issue.  I put in my XPdI3-IW switch into my pool box.  The lights were previously just on the breaker directly.  That works, but after setting up my two lights, one works, the other worked for about 5 minutes, when I turned it off and then back on from the remote, it would not come back on.  I went to the switch and noticed a strange smell, turn off the power and removed the switch.  It was connected correctly, not sure what happened.

Could I have running the switch?  I am using the Black/White and Blue wires, the red wire does not have anything on it, I just put a wire nut at the end so it would not touch anything.  My other switch is a XPDI3-W, not the -IW.  could that be a difference.  it only has the three wires? 

The "I" means inductive so switch can be used on incandescent AND inductive loads like Malibu lights(transformer)  or ceiling fans, although most transformers do not like to be dimmed. If the white switch wire went to the neutral line, it sounds like you have it wired correctly, so is the light an incadescent bulb, not LED or CFL? If incandescent, it is probably just a bad switch.