I noticed that after i created an On / Off relationship so that I could decal a model. The relationship work doesn't transfer to a new model when the geometry is copied into that new model. Does this require an additional step or does this just not transfer over? Someone please help me on this one.

Normally you would use an action for decalling.
Just use the action to unwrap and decal a model. That will transfer to the real model and you wont have to copy anything.

*Fuchur*

What geometry are you copying if you're only decalling? Anyway, I think the solution is that you havn't turned on the pose......the decal will only be there if it's set to ON.....which you can do in the User Properties for the model (or the pose window in an action/chor).