Problem with PD-5NE

What I thought was a simple setup - replacing a setup that had a 3-way rocker and 3-way dimmer (both Leviton). At the location of the dimmer, put red, black, & white together with wire nut (will place Pico remote there). Other location installed PD-5NE. White and red go to red on switch, black to black, & white on switch to neutral bundle in box. This is driving (2) canned lights. At first I had Philips dimmable led's. It worked, but lights would not dim, only full on/off - and would turn on by themselves. Replaced with 2 incandescent - they would not turn on at all (??). Thought I had a bad switch. Moved it to a single location that had line voltage halogen (wac track lighting) - works perfectly. Any thoughts on why it would not work in first location? Any soft white PAR30 bulbs that are proven to work?

Thank you