Dee Dee,
I'm a bit puzzled about the overexposure but let me suggest one thing: did you set the flash for high-speed flash sync? In ETTL, the 580 will synchronize with your shutter at any speed as long as you set it for high-speed sync. If you didn't -- and you shot Program mode -- the camera would set a maximum shutter speed of 1/125 and you could overexpose the images in sunlight. That would also explain why it would work in test mode if you tested indoors or in a darker environment.

Other than that, I'm perplexed.

I like the first image, too. The DOF is nice and both the handler and the dog look good. I don't mind the shadows in any of them. But I love available light photography so shadows are my friend .

I think you need to put that flash on your camera and find out what's going on. Today's flash units are so smart that there is very little we have to do to get good fill-flash. So there is definitely something wrong with your settings or with the flash itself.

Good luck but nice job with the reshoot.

Jim