Ermm... thats not how I understand it. You correctly mention that it will show high in this situation, but it shouldnt according to your logic. To my knowledge the FMS doesnt care if you are on the intercept segment or 20 miles offset, it will take your displacement along and paralell to this segment (instead of a continuously computed direct path to the waypoint) to calculate the path. In your example - it shouldnt matter if you are on the 270 radial or if you are 5 miles north or south of it. Hey, thats my observation at least...
