When you issue the wait command from the command interface instead of their dialogue, you have to wait until they are in the exact spot you told them to wait in before closing the command interface or they will return to to following you.
I find the code to be the best follower code in any game like this. If I walk around a trap, my companions will take the exact same path I just walked, instead of going straight over the trap. The only negative thing I can say about them is that, for some reason I was trying to get a dragon that wasn't attacking but circling over me he pulled out his sword, but when a wolf got right in his face, he pulled out his bow to kill the wolf and then turned to face the dragon pulling out his 2-handed sword again.
Well it seems that the follower code doesn't work right with Lydia... I've actually changed to another companion and this one actually WORKS it seems. When I approach her she backs away. To confirm it I loaded a save with Lydia again and did the same experiment in the same location. The result is she just stands there going "HUH?" like a moron.
So now I have a conjurer mage following me and a dog and a horse and it is ALL WORKING. I have gotten blocked a total of twice since I changed (in about 6 hours of gaming) and that was my bloody fire atronarch heh... at least I could re-cast her somewhere else to get past.
I did have a real funny with this mage follower though... There I was trotting along on my horse with the dog next to me and the mage behind me and out pops an assassin. Mage helpfully casts an ice storm (at least that is what I think it was) and it killed my horse AND my dog and totally missed the assassin. Cue an imaginary mental voice from the mage going "OOPS!".
Then later on a battle finishes and I look over and spot the dog run up to my mage follower and bite her on the bum. Then cue the 360 crashing as I burst out laughing. It was like "
you shouldn't have seen that"
So yeah, I was raging at Lydia... now I have got rid of the dumb biatch the companion code seems to work better even if it still does throw out a few wobblies at times. Still, I don't mind it when it happens occasionally... it's when it happens every few minutes that annoys the hell out of me.