From those two statements, you want it to be closed nearly all of the time (as in 99% of the time -- only open it to flush / wash off the membrane). With it closed, water should only come out the waste line while the auto-shutoff valve is open, which should only be when water is coming out of the product water line / out of the DI cartridge. If the unit is not operating in that manner, it would seem the problem would lie in the auto-shutoff valve not being able to close properly.position "close" to force the water to go through the membrane
position "open" to allow all water to pass over the membrane and washes it off