Orient Joint vs Not to Orient Joint

#1
It seems that my arm problems I was having was due to the joints being oriented. Now, I'm not sure what axis they are supposed to be oriented on. I usually do Z down the length of the bone. (ZYX Secondary Axis +Y). But, when I moved the pole vector it behaved oddly and then I couldn't get the hand controller to rotate the wrist.

If I leave the joints alone after creating them, all problems are solved.

I've attached a file with both set ups.
 

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