This is probably way off base, but have you checked settings.dfl for
blank lines (i.e., CR/LF followed by either another CR/LF or space
CR/LF)?
I found a dozen or so carriage returns [left-pointing arrow as displayed by XY4 (and no idea what Yahoo mail would display since it keeps adding stray exclamation points to previous posts)] without the semicolon before them, so I added the semis I see everywhere else in the file. If this was a bad idea, I kept a copy of the previous settings.dfl. Nothing untoward in my keyboard file, xy4-3.kbd.
In any event, the PAsting problem remains. Memory value is only 2.
Jon Pareles