It looks like you did alright, although it would be easier for us to give feedback if you could recall more details about the run.
QUOTE (artent @ Aug 20 2013, 02:27 PM)

The hacker got within cable range of a lock and hacked it directly using Hack on the fly. As per the example on pg. 224. He easily got a few marks on the lock and thus the Host for the building. Next he used an Enter Host action to get into the building.
This sounds more or less right, although in most cases a lock on a reasonably secure facility isn't going to have easy access to it's universal data port. You'd probably need to make a Lockpick check to open the casing to gain access to a port, as noted on Page 363: "The first step to bypassing a maglock is to remove the case and access the maglock’s electronic guts." In really secure facilities they may also have tamper sensors, so it would require two checks to open it without setting off an alert.
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Next he rolled Matrix Perception to find the distress button device(did he have to do this, what was his threshold?).
Matrix Perception is what you use to locate icons inside a host. Matrix Search is used to locate data, but this is a device icon, not information. Hosts are virtual so the 100 meters rule may not apply, but page 241 on Matrix Perception notes: "If you’re trying to spot an icon that is farther than 100 meters away, this is a Simple Test: the first hit lets you spot the target, and any additional hits can be used to get more information about it as mentioned above." It sounds like you handled things ok if the Panic Button was running in public mode.
If it was running Private mode, things are less clear. Page 235 notes: "If you know at least one feature of an icon running silent, you can spot the icon (Running Silent, below)." My reading of that is: If you know there is a Panic Button, and your first Matrix Perception check didn't spot the icon, then you can make a check to locate the Hidden Icon directly, pitting your Computer + Intuition [Data Processing] vs it's Logic + Sleaze. Another interpretation is that you would need to make a Matrix Perception test, or spend a hit from a previous test, to determine the number of Running Silent Icons in the Host, and then randomly pick them and attempt to spot them until you found the one you wanted. Personally, that sound rather boring.
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Next he used Spoof Command to disable the alarm.
This might be wrong. To spoof a device you need to have a mark on on it's
owner's Icon. page 242 "You spoof a device’s owner’s identity, making the device think that your command is a legitimate one from its owner. You need one mark on the icon you are imitating;" Although the device is slaved to the host, slaving and ownership are not the same thing, so unless your player had a mark on owner, he can't spoof. It's not entirely clear if an owner can be something other than a person (like a host) although page 237 notes a Corporation as an owner. Ownership is used for determining attributes used in defense tests, so it's important for a number of reasons actually.
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(At this point we realized that he had almost no chance of success on this if the device was defending with the hosts stats, this didn't feel right so we figured once you get into the Host you are past the Hosts external defenses and you roll against the device itself)
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I'm not sure what rating the Host was but I think 5-6. Had our Decker been forced to roll an opposed test against the Host we could not have done this run, period.
A rating 5 Host is applicable for "local police" and would have matrix attributes of 5/6/7/8 (Gm's choice, see page 247) so that's a tough run to go on. Those attributes would be used for the IC certainly, but as other posters have noted from page 233: "If you are in a host that has a WAN, you are considered directly connected to all devices in the WAN." It sounds like once inside the Host you'd be able to interact with
devices at their standard attributes instead of at Host Enhanced ones. I guess the protection of the Host is that you have to get into it first, and that it has IC, which incidentally do use the rather high Host Matrix Attributes. As a side note: Files in a host use the Host attributes instead of their owner's for defending against the Edit File action, page 239: "The defender against this test is either the host holding the file or the owner of the file (if it’s not on a host)."
So to disable the the button, the player could have secured 3 marks on it via (possibly repeated) Hack on the Fly/Brute Force actions and then Formatted the device and forced it to Reboot (two more hacker actions). Alternatively he could have dataspiked it until it was bricked, or placed a mark on its owner and then spoof commands to it for the reboot and then reformat. Lastly, you might have allowed use of the Control Device matrix action to change it's response to being activated, but I'd have required at least 3 marks (Complex action) for that.