Deise, in my understanding, CIO Sydney already performed the initial (primary) document completeness check, a complete eligibility review on your application, and charged your credit card. After the document check and eligibility review was successful (which was the case of all of us in this forum), they sent you a letter or email asking you to mail the following things to Buffalo: the same documents that you've already submitted to Sydney, also the additional documentation that's specific to the Buffalo. At the same time Sydney office transferred your file's information to Buffalo, where, together with your newly mailed document package, it was sitting and waiting in line until your time comes. Having a huge backlog of immigration applications, Buffalo (and other larger immigration offices) was too busy to completely process your application (at least I got a request for the criminal records from Buffalo, not from Seattle), so they transferred your file for processing to the less busy office in Seattle. That means, Seattle is doing what had to be done in Buffalo. Therefore, transferring your file from Buffalo to Seattle doesn't mean that everything is in order, because, when you were requested by Sydney to mail all the initial and additional (supporting) documents to Buffalo, I don't think that Buffalo checked the completeness of the additional documentation yet before transferring your file to Seattle. Once your time comes in Seattle and once the office begins processing your file, only then you will be informed in one way or another if everything is okay or not. I hope this helps.
My fiance got confirmation on his PNP actually today - long story short, my latest LMO was rejected, so we had to get a PNP to stay in the country. We applied for our FSW the start of 2010 (like most of the people here). THEN my LMO appeal was approved... 
