Brandon, I just did some testing. From what I can tell, leaving #1 on all the time does not hurt anything. I get the same AV and TV ambient readings regardless of the switch 1 position. The only reason I can see for leaving switch 1 off is if you do not want to have to scroll through 3 toggle positions in ambient mode. Please let me know if I am missing something there....
Regarding switch #4, as Brandon states above, it does nothing if switch 3 is off. The manual incorrectly states several times that the LCD panel displays 1/10 stop only when Dip switches 3 AND 4 are in the off position. But if #3 if off, the LCD still displays 1/10 stop regardless of the switch #4 position.
The thing that sucks is, since switch 4 does nothing if switch 3 off, you can't have 1/3 stop shutter speeds paired with 1/10 stop aperture readings (you have to buy a more expensive model for that).
Someone correct me if I'm wrong, but this is how I understand the switch options:
1. For 1/10 f/stops on the LCD > switch 3 off > 1/2 stops only for shutter speed.
2. For 1/2 stop shutter speeds and aperture stops > switch 3 on, switch 4 off.
3. For 1/3 stop shutter speeds and aperture stops > switch 3 on, switch 4 on.
4. If you ever think you'll use EV mode > switch 1 on.
5. If you never use EV mode, or don't like scrolling through 3 ambient modes > switch 1 off.