Card Rule Manipulation

Help! I smurfed up! I thought I understood it well enough, but I didn't!

This is how I understood the rules:
1. If you don't want a rule, refuse to play until the agreed ruleset is to your liking.
2. If you play a game with rules unfamiliar to the region you are currently in, eventually it will spread with the message "[rule] has spread across this region!" or something like that. (No such thing happened when I spread All, so I suspect it might not work with trading rules.)

So I was in Balamb, having an awesome time with Triple Triad. I played the Card Queen until she used the "All" trading rule, and went around playing with that so I could steal everyone's cards! Then I made the mistake of not paying attention to the rules when challenging a fisherman, and all of my rules (all one of them: Open) are gone. I hadn't saved in some time, so I decided to pay the Card Queen 30,000 Gil to spread Open in Balamb. I played around a bunch until I had won several games with the "Open" and "All" rules in a row, so I could be absolutely sure that I had them.

Then I go to Timber to do Timber stuff. I go to play Watts for the Angelo card and he makes no note of me having rules from another region. The ruleset is always Same and All. I ask over and over again without playing once and he never ever wants to use Open and he never acknowledges the fact that I know it. Eventually I give up and figure I just don't have it for whatever reason, and play with Same and All. After several games he decides to use One. I decline, but he's stubborn. I ask over and over again but he refuses to use All!

Questions:
Do rules spread to one region by the Card Queen stay in that region only?
Will someone refuse to use All if you beat them enough times?
What is happeningggg?

It looks like no one has answered your question, Jessweeee♪! I recommend checking out a number of different sources at GameFAQs for Final Fantasy VIII to determine the answers to your questions.

Yeah, I still have no explanation as to where my Balamb rules disappeared to when I talked to Watts, but I've got a much better handle on rule manipulation now xD