Sorry, I saw this post yesterday, but it was non-stop here all day, and didn't get a chance to respond.
Really, the handshake bit isn't all that useful 99.5% of the time. It is basically a digital tag you can configure that gets set to a 1 (True), when the associated alarm condition is active. If you leave auto-reset off, it will stay true until the alarm is acknowledged, and the condition is cleared. If auto-reset is on, it will just mimic the actual alarm condition (HS bit is TRUE when the alarm condition exists, and goes FALSE when it clears, whether acknowledged or not).
About the only practical use I've ever found for alarm handshaking on FTView, is a situation where you can have alarms coming from multiple devices. As a for instance, imagine you have a single FTView application monitoring run conditions from multiple PLC's. Using handshake bits would allow you to set up a single alarm beacon hanging off of one PLC, that would go active any time an alarm occurs (that is handshaked). It is a handy shortcut there as opposed to messaging back and forth between PLC's.
Note that by default, even if configured, handshaking is OFF. You need to explicitly turn it on with either a parameter to the AlarmOn command (/H), or the command HandshakeOn.
Much more useful is the alarm acknowledge bit, especially if you don't automatically clear alarm conditions in PLC logic. With that one, when the alarm is acknowledged on the HMI, the PLC is informed of the acknowledgment, and can automatically unlatch an alarm. Strangely, in this case, the handshake function can be useful as a feedback to the PLC to indicate that "Yep, I've cleared the condition".