1) The first PSTN particle's ctype is INSL, which means its arm will stop if it bumps into INSL. The head already has a lot of INSL so it won't even move. Set it to 0 or some other element you want to stop the arm.
2) The FRME part of the arm is counted when applying the particle limit in .tmp, so you need to set it to 8 for the head to move.