I was hoping the Gamestoppers column would help me understand this more, but alas I'm more confused.
Ok, this seems to make enough sense, conduct your grapple with a -20 penalty or suffer the normal consequences of being grappled.
The long winded question, at what point would a creature with Improved Grab ever be considered grappling?
Improved Grab(Ex): If the creature hits with a melee weapon (usually a claw or bite attack), it deals normal damage and attempts to start a grapple as a free action without provoking an attack of opportunity (see Grapple, page 137 of Player's Handbook). No initial touch attack is required, and Tiny and Small creatures do not suffer a special size penalty. Unless otherwise stated, improved grab works only against opponents at least one size category smaller than the creature. The creature has the option to conduct the grapple normally, or simply use the part of its body used in the improved grab to hold the opponent. If it chooses to do the latter, it suffers a -20 penalty to grapple checks, but is not considered grappled itself; the creature does not lose its Dexterity bonus to AC, still threatens an area, and can use its remaining attacks against other opponents.
Ok, this seems to make enough sense, conduct your grapple with a -20 penalty or suffer the normal consequences of being grappled.
But once you get the hold, you are no longer considered grappled, so why bother with the -20 penalty, except to get your additional attacks? When does this happen? The normal rules for grappling have:When a creature gets a hold after an improved grab attack, it pulls the opponent into its space. This act does not provoke attacks of opportunity. The creature is not considered grappled while it holds the opponent, so it still threatens adjacent squares and retains its Dexterity bonus. It can even move (possibly carrying away the opponent), provided it can drag the opponent's weight.
Improved grab skips this step, moving right on to:Grab: You make a melee touch attack to grab the target. If you fail to hit the target, you fail to start the grapple.
This appears to be where the Improved Grab starts, at the Hold, however without the additional damage, excepting constrict.Hold: Make an opposed grapple check. If you succeed, you have started the grapple, and you deal damage to the target as if with an unarmed strike.
If you lose, you fail to start the grapple.
With Improved Grab, I pull you into my square, so this still holds true, somewhat. After that you are grappling.Move In: To maintain the grapple, you must move into the target's space. Moving, as normal, provokes attacks of opportunity from threatening enemies, but not from your target.
The long winded question, at what point would a creature with Improved Grab ever be considered grappling?