I must admit I read it as 'dipping' would not be counted, I did wonder how this was going to be implemented though. Maybe you need to reword Rule 5, something like the following:
From:
"Virtual drops (Dipping) will not be counted - TBs must be dropped & collected by different Cachers (if moved on by the same Cacher only the FIRST jump will be counted)"
To:
"TBs must be dropped & collected by different Cachers (if moved on by the same Cacher only the FIRST jump will be counted, regardless of 'Visited' or 'Dropped Off' log, any subsequent logs by the same Cacher will not be counted)."