The limitations and missreadings come from incorrect grounding. If the neutral is jumped over to the ground, the 3 prong will respond "Correct Wiring", and will typically trip the device. No one was the wiser. OR The 3 prong could determine that the device "appeared to be" wired correctly but the device does not have a ground. Thus the tester would not trip the device, but the TEST button on the device did function. The 3 prong tester is an indirect gross test of the GFI function buy diverting some of the curent to the ground. This is what makes the GFI circuit "unbalanced" and trip (sending power to the ground is not a controlled amount of voltage, like the required 4 mA to 6 mA to trip a device) The sure test can determine, thru resistance, if the neutral is connected to the ground. It will also determine the amount of milliamps the device needed to trip. It will test the GFI if it is installed on an ungrounded system. The 3 prong will determine that it is ungrounded, but it needs a ground to function and test the GFI. I hope this clarifies the limitations of the 3 prong tester. Joe