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Applying the parent caught me a few times, as i overlooked switching between Editmode and Posemode. Besides that, thanks for explaining this confusing topic in an understandable way 
Blender could definitely make the UI in this instance much more Explicit. Glad it came across well!
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This is the most confusing part of rigging and you managed an excellent explanation of what is going on. I still stumble on the IK setup but, I have a little more grasp of how to correct it myself.