Fixes

src/main/java/refinedstorage/tile/ControllerSearcher.java

@@ -20,8 +20,7 @@ public class ControllerSearcher {
         if (tile instanceof TileController) {
             return (TileController) tile;
         } else if (tile instanceof TileMachine) {
-            // We need to have visited more than 1 tile so that the relay can find a controller for itself
+            if (visited.size() > 1 && tile instanceof TileRelay && !((TileRelay) tile).mayUpdate()) {
-            if (visited.size() > 1 && tile instanceof TileRelay && !((TileRelay) tile).isConnected()) {
                 return null;
             }
 

src/main/java/refinedstorage/tile/TileController.java

@@ -104,7 +104,12 @@ public class TileController extends TileBase implements IEnergyReceiver, ISynchr
         super.update();
 
         if (!worldObj.isRemote) {
-            machines.addAll(machinesToAdd);
+            // Prevent cache from re-adding the block
+            for (TileMachine machine : machinesToAdd) {
+                if (!machines.contains(machine)) {
+                    machines.add(machine);
+                }
+            }
             machinesToAdd.clear();
 
             machines.removeAll(machinesToRemove);

src/main/java/refinedstorage/tile/TileRelay.java

@@ -1,10 +1,13 @@
 package refinedstorage.tile;
 
 import net.minecraft.inventory.Container;
+import refinedstorage.RefinedStorageBlocks;
 import refinedstorage.container.ContainerRelay;
 import refinedstorage.tile.config.RedstoneMode;
 
 public class TileRelay extends TileMachine {
+    private boolean couldUpdate;
+
     public TileRelay() {
         this.redstoneMode = RedstoneMode.LOW;
     }
@@ -18,6 +21,16 @@ public class TileRelay extends TileMachine {
     public void updateMachine() {
     }
 
+    public void update() {
+        super.update();
+
+        if (connected && couldUpdate != mayUpdate()) {
+            couldUpdate = mayUpdate();
+
+            worldObj.notifyNeighborsOfStateChange(pos, RefinedStorageBlocks.RELAY);
+        }
+    }
+
     @Override
     public Class<? extends Container> getContainer() {
         return ContainerRelay.class;