A Damage Engine provides you with the ability to create triggers that can interact with Damage being dealt. When I asked you to post your Damage trigger, I meant any triggers you created that detect damage. If it's Bribe's Damage Engine it'd look something like this:
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Events
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Game - DamageModifierEvent becomes Equal to 1.00
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Conditions
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Actions
And it sounds like your Dummy unit isn't setup properly. A Dummy unit should be able to cast a spell instantly on any number of targets without any delays. Make sure your Dummy unit has these settings:
Movement Type: None
Speed Base: 0
Art - Cast Point / Backswing: 0.00
Attacks Enabled: None
Death Type: Can't Raise, Does Not Decay
Also, I edited my first post and added some other things that you should change so look over that again if you'd like.
That being said, I still don't fully understand how you want the spell to work. Why not use Acid Bomb as the main spell instead of Channel? What does the spell do exactly? Can you give me it's tooltip description.
As far as I understand you want to fire a missile at an enemy unit which deals Damage based on the caster's Intelligence upon impact. If that's the case, I would ditch the Wait stuff and detect when Acid Bomb hits it's target using a Damage Engine trigger. Then you can deal the bonus damage in this new trigger.
Something like this, assuming you're using Bribe's Damage Engine:
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Events
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Game - DamageModifierEvent becomes Equal to 1.00
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Conditions
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Unit-type of DamageEventSource Equal to FlameBurstDummy
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Actions
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Set Variable PN = Player number of (Owner of (DamageEventSource))
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Unit - Cause PlayerHero[PN] to deal X damage to DamageEventTarget...
If you're on an older version of DamageEngine you may have to take extra steps. I believe older versions had to temporarily turn off the Damage Engine before dealing damage inside of a Damage Event trigger. There's plenty of information out there about how the systems works if you need help.