I've seen misbehaviour like that too on my 4x8 multiswitch occasionally but never figured out why I only remember seeing it happen on my DM500s, not with other receivers like Strong, Humax, Nokia, Manhattan & Benjamin, but can't be certain about that.
The delay you're describing certainly shouldn't happen. I was under the impression that 22kHz tone-based switches (the technology used by multiswitches) are generally more reliable than DiSEqC ones. If others here are aware of common problems with 22kHz tone switches then I too would love to hear about it.
My best guess is your multiswitch may be on the way out. If you can borrow another one off a friend it would be a good first step to try.
I've never pulled a mutiswitch (or 22kHz switch) apart so I'm not sure how their tone detection is being done. If done using a then its 22kHz detection would be flakey if the passband characteristics drifted. If done using a then an inaccurate reference would definitely explain the sluggish response. Drifting timebases can be caused by aging capacitors (is your multiswitch new?). Timebases can also be temperature sensitive so it may be worth blasting your multiswitch with a cooling spray, observe how long it takes to lock, then repeat after heating for a while to see if lock time changes. If so that would point finger at your multiswitch.
Ensure that your DM500S (and your other receivers when connected) all have DiSEqC switched off. Stray DiSEqC pulses can upset some 22kHz switches, as and .
Because my occasional switching problems always seemed to manifest with my DM500 I've long been suspicious about DM500's 22kHz implementation. But as nobody else has mentioned it I'd have to say it's more likely to be a multiswitch fault than a DM500 fault. Do you observe the switching delay on your other receivers as well?
If trouble persists, maybe monitor the DM500 output voltage with a multimeter to check it's not misbehaving. And try experimenting with the Dream's LNB voltage boost option. I know the fault appears to be 22kHz related but you just never know.
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