Thanks for the responses. All of my questions relate to carded figures and not loose.
How have AFA dropped the ball recently?
You should read up on Toy Toni and a host of easy to find threads and articles on repro weapons graded with loose figures, damage caused to loose figures & MOCs by grading and incorrectly described matrix codes for MOCs by graders etc.
What is U grading?
Terrible and destructive process of cutting open baggies or ripping figures off cards to give them an 'Uncirculated" grade, this practice is effectively supported by AFA, who unlike UKG who have publicly come out in support of stopping the practice and no longer provide U grades.
Which has the stricter grading criteria UKG or AFA?
Neither are in anyway strict, both are just someones (often ill informed) opinion (see ball dropping question)
If selling Palitoy carded figures are UKG Difficult to sell?
To folk that don't care to pay a premium for another persons opinion... maybe, otherwise no not at all
If a figure is graded does that automatically mean it is genuine? Will the Grader always pick up reseals or copies?
Nope, not at all, see the ball dropping question.
What is meant by a Toy Toni figure or piece?
Approx 11 pages of very useful and important knowledge that you should read right here:
http://www.starwarsforum.co.uk/viewtopic.php?f=16&t=18756
Sorry about all the questions, thank you for your time in answering them.