Hey KillerPenguin -
Ok, I’ve been working with your assets and creating duplicates in various engine versions. I 've been able to reproduce the behavior in Scenario One above when both modules have a checked local space I am getting the offset as you show above. However I am not able to reproduce the Scenario 2 yet. The Ribbon Emitter follows the particles just fine without local space checked. I am going to go back through your assets again to double check every setting.
Thank you for the information above it helped me narrow down the scope a lot.
Eric Ketchum