I know this is a little late now that people are enamored with the G2, but I have finally resolved my problems with my G1 and manual flash/multiple flash. Check out my web page for full details. I'll include the final resolution below.
http://home.nc.rr.com/bagleyhome/Digital%20Photography.htm
Resolution:
After nearly four months, three Canon Technicians, two supervisors and the Assistant Director of Technical Information, Chuck Westfall, my Canon G1 multi-flash problems have been resolved. None of the technicians ever duplicated my findings. I find this completely absurd. I sent a printout of this web page, my G1, 380EX and all cables and accessories involved. Why they were unable to hook up the cables and push the shutter button is beyond me.
Chuck was the only person who even understood my problem. He acknowledged the problem but made it very clear that Canon had no intention of fixing it. I had two choices, live with it, or try to get rid of my G1. I asked Chuck if there was any way I could upgrade to a D30 or get a refund. He instructed me to call Canon Customer Relations. I called them and was given an offer to upgrade to the D30. Unfortunately, their offer did not include the Canon rebate for the extra battery and the 1 Gb microdrive. Their D30 price was also more than what I can get it for at B&H. I turned down that offer and pursued a refund. I was informed today that Canon has cut a check for me for the full purchase price of the Canon G1 and all accessories I purchased for it. This is good because I have already bought a Canon D30. Even though I really didn’t want to spend this much money, I am much happier with the D30. Check out a few pictures of my daughter I took this past week.
http://home.nc.rr.com/bagleyhome/Elise.htm
One last note, I was given a chance to run my tests using a G1 with the original firmware, 1.0.0.0. That camera did NOT have the problem. This proves that the multi-flash incompatibility was introduced with the first firmware update. I asked Canon to back-date my firmware, and was informed that there is no way to do this.
I asked Chuck if the G2 would have the same problem. He informed me that the G2 did have more rigorous flash tests done on it, but they were done using the wireless flash system. Therefore, the G2 probably will not work with the Canon flash cables either.