I don't know about the S-TTL stuff as I don't use it, but I consider this to be correct for manual operation:
Manual Mode (Magnet switch pressed + camera flash set to manual 1/64)
-Right Dial at 9 oc position, slightly underexposed(darkest)
-Becoming brighter as I turn the dial clockwise and becoming more and more overexposed.
-Brightest at position 8 oc.
The setting on your camera flash shouldn't matter, as long as it isn't pre-flashing (check your manual to ensure the camera isn't attempting to eTTL it). But it seems like you are achieving the expected result with the brightest position at 8 o'clock or the "set it to 11" marking on the strobe. It's also worth noting that 11 won't give you a full dump of the strobe - you need to turn it to Full to get this. You can test it by watching how long the red light takes to come back on after flashing. It's slightly longer for a full dump vs a manual-set-to-11.
If you leave the magnet switch out/unpressed then the strobe will be pre-flashing. If the camera is set to flash manually and therefore the shutter is capturing the pre-flash, you will get the same dim flash appearing in all pictures regardless of settings.