I used the SimpleHomeNet utility program to set the timers. In the garage, I have R1 and R2 set to hold for two seconds when activated. In the living room, I have R1 set to latch and hold when I1 goes high.
I did have a problem with the first 2×4. I made the mistake of getting it from SH instead of SHN, and ended up with a unit with very old firmware. Al swapped it for me, and I’ve had wonderful luck with the 2×4’s ever since. They get exercised regularly, and are very dependable.
One thing you might have overlooked — there’s a timer enable checkbox on one of the other screens for the 2×4 (and probably the same for the 8SA, although I haven’t looked). If that’s not checked, the timings don’t apply. I don’t know if that makes them reset to zero, but it’s worth looking at.
Er, wait — just re-read your original post. You want to get a delayed off without involving the relays? That is, I1 goes high and without going low again you want it to send an Insteon OFF signal? I have NOT done that. I use the inputs to monitor external conditions, and the relays to control devices. It’s the relays that I have set up with timers. You can probably do what you want by telling R1 to follow I1, but with a timer to shut off after x seconds. Then you’d monitor the relay’s state instead of monitoring the input’s state. That’s a combination of what I’m doing with in the garage (relays automatically shutting off) and the living room (relay following the input).