“	Shaolin Shi, one thing got me thinking. IF the Chi is "locked" in the palm as a result from these exercises, how come I was able to transfer energy to the egg If the energy is just building up in the arm and can`t go anywhere, the egg test should not have worked, right	”

I don't think the chi is "locked" in the palm. The warm palm just indicates resistance to the flow.... or that a certain amount of chi is backing up there.