Good question....

Okay, so here's the issue, and it's a pretty common mistake found in many such instructions in various articles and survival manuals over the years.

The clear area in the middle of the aimer is there to allow you to easier locate the target. However, the fireball can only be seen where there is an edge of retro-reflective material. In a mesh design, or one with punched holes, etc, that is only within or at the edge of the mesh. With the StarFlash style, it is only at the edge of the star.

You have to move the mirror so the target is within the mesh area or at the edge of the star to make it work.

The fireball can never be seen in the clear area in the middle of the aimer.

So, they sorta, kinda, almost started out right in illustration #2, but #3 and #4 are impossible.

See the instructions here for a more realistic example of how it really works: http://www.dougritter.com/psp_rescueflash.htm