An opponent at the weekend used Dutch Vander to attack my X-wing and did 2 damage.

• I used nearby Jan to brace this down to one damage using one of her defence tokens.
• Then I used Biggs to transfer the remaining 1 damage point to a nearby YT1300.

So the X-wing took no damage and we therefore ruled that Dutch could not toggle the activation slider of the X-Wing, or on the YT-1300. Were we correct?

Yes.

Dutch was not attacking the yt-1300.

The x-wing didn't suffer damage.

If the conditions are not met the effect is not resolved.

This is correct.