Rule 3 - The Projection axis relates to the local pivot system of the RailClone object - not the spline's or world's axes.
is actually
Rule 3 - The Projection axis relates to the orientation (bounding box) of the RailClone object - not the spline's or world's axes.
which is (unfortunately) not the same... changing the pivot doesn't have any effect. I would actually be nice that RC behaves like the help description, pivot is much more easier to modify in max than BB/ object orientation