OK, nevermind - after sleeping on it I realized that I had read in the forum somewhere that a grandparent cannot take on the attributes of a grandchild, that the parent has to make a bridge between the two. When I created my "swatch" component, it because a grandchild of my dynamic component. Today I built the bridge, put the material info on the swatch (grandchild) level, referencing the swatch material in my parent level and referencing my parent material at the grandparent level - it works like a charm!!!