NOTE: This problem is most likely caused by line noise. The noise on the line stops the X10 signal from getting through so you can't turn the light on. BUT if you turn the light on from its push button, it puts a load across the line that attenuates the noise, so now you can dim or turn off the light. As soon as you turn it off, and remove the load, the noise pops back up. You need to determine the source of the noise and filter it.
This is the Push Button Style X10 Relay Wall Switch! This fits in a normal toggle style wall plate and has a convenient LED system to let you know if the unit is on or off and will also help you find the switch in complete darkness! This is a relay wall switch and will work with all Lighting including Incandescent, LED, Halogen, Fluorescent and more! Installation and Operation are simple. Simply install in existing switches location (requires a Neutral wire), set the dial to the housecode you want to give the unit and operate with your favorite X10 controller! The unit is rated at 120 Volts 10 Amps / 1000 Watts. The unit has been designed to have a better construction and feel than previous switches, while also providing additional, useful features like the LED night light to help you locate the switch in the dark!