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They don't work on players in SMP. I hear it generally just disconnect them with an illegal movement error. Lava traps are the way forward.
I installed TMI today just to dick around with pistons. I'm getting the hang of using them, but redstone is fucking temperamental about where you can and can't place it to have power running into objects.
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For your first point: I've nearly killed myself with this (on SMP). I only didn't die because I ran out of there (if the death hallway were longer it would've been game over man, GAME OVER)
For your second point: Use repeaters with no delay (or a delay if you wanna be a little bit fancy) to connect to pistons. This allows for pistons in a row to be powered.