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You need to have a functioning safety bond wire at the outlet for the plug in surge protector not to become a safety hazard. You also need a GOOD earth ground. That old ground rod and loose wires won�t provide a good path for the energy to travel in. Lighting energy is usually high frequency energy, so it behaves more like Radio Frequency energy from a transmitter than regular AC or DC power. This means that in the earth bounding system there should be no sharp bends to the wires, large conductors, clean and tight connections, etc. You really need at least two different suppressors on a home. The first one is rated for location C or whole house. This is normally at the main service entrance. These devices are designed to handle large currents and typically have a clamping voltage in the 500V � 800V range and are typically in the $40 - $80 range. The second suppressor that is needed is for location A or point of use. The most common is the plug in surge suppressor. These are designed to see a much smaller amount of energy than the location B suppressors. The most important rating on a plug in surge suppressor is the clamping voltage. The IEEE-1449 Transient Voltage Surge Suppressor test that surge suppressors are rated with list the best clamp voltage possible at 330V line to line and 330V line to ground. There are many suppressors that have a 330V � 330V rating in the $5 - $50 range. These devices are usually designed to suppress many small spikes, or one or two larger ones before that need to be replaced. I recommend that most people purchase several of the plug in suppressors. Due to the frequency of the surge energy it may not prorogate down the different runs of wire in the home the same. Some outlets could see almost no surge energy, and others could see the bulk of the surge energy that entered the system. The purpose of the suppressor is to provide a path around the device that is being protected. They can shunt the energy to or from the earth ground, across the line and can convert it to heat. The goal is to dissipate the energy before it can damage or destroy the devices you are trying to protect. The more suppressors you have the better the suppression should be. This link has a lot more information: Link For something a bit more technical: Link
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