Does anyone know if there is a definitive way to tell if IB and multicharts are communicating? Ie: when MC generates a signal it will be executed (baring any one off barriers) ?

The reason I ask is that from time to time despite MC showing it is connected (green box in the corner and interactive data coming in for chart drawing) multiple trades will fail to execute. This is very strange because I use market orders and there are no API barriers - I run this all the time, however some times it just stops sending the orders (or IB stops accepting the orders)...
Any thoughts? any one else experience this?

You are aware of the Audit Trail in TWS?

From the menu: "Account" -> "Audit Trail". You should be able to see whether TWS received an order or not.

Interesting, ok - thanks.

I subscribed to Level 2 data through IB, which is exchange specific, you subsribe to each one individually. If I want the Level 2 data to show in the DOM or on the chart I must choose the symbol from the original exchange. ie: AIG nyse - so far, so good.
The problem comes when I want to place an order. The chart and the DOM send the order for the specific exchange not SMART and if the price on the nyse is not the best price then the order is rejected. It just says system cancelled but after talking to technical support, this is what happens.
Hopefully, they will have a resolution soon.

As and update to my last post. The customer service at Multicharts has been exceptional. They sent my problems off to engineering and within a week I had updates emailed to me that fixed the issues.