I have the YS25 DX. My camera is a Sony P-10.
The [OFF, 1, 2, 3] dial is the synch pattern adjustment control. Some digital cameras will trigger their flash briefly to provide focusing illumination or red eye reduction. This control tells the YS 25 strobe to ignore these extraneous flashes. The strobe will respond and properly synch when set to only one of these settings.
To test this for your particular camera: put your camera in the U/W housing; turn on your camera; set it to trigger the camera's strobe; point the camera at the YS-25 strobe; take a picture. If the strobe goes off and you record the light pulse, then you have the right synchronization. If you take a picture, the camera flash triggers and the strobe triggers, but you didn't record the flash pulse, then you don't have proper synch. Change the number and try again. This is the number you will use all the time. Write it down on your rig and constantly double check for missettings. Be careful here and test synch with each possible setting. With my camera there was one setting where I could see the flash, but it was very dim, only part of the pulse was recorded. Another setting there was no flash seen and on the correct setting, the flash blew out the image.
Are you using the fiber optic cable? If not and you are in dark or murky water the camera flash may not be kicking out enough power to trip the YS25. I know the fiber optic is expensive, but you could make your own. Fiber optic is available from consumer scientific stores like :
http://www.sciplus.com/about.cfm
or
http://scientificsonline.com
You can purchase plastic rod stock from hobby, craft or hardware stores to make the tapered plugs to hold the F/O in the strobe and camera ports.
To conserve battery life I set my camera's flash to low. After all it's only triggering the YS 25 strobe, not illuminating anything. I also turn off the red eye reduction and the focusing illuminator.