With the dilute 0.125% bupivacaine, the patients get little motor block. They get somewhat comfortable, but not 100% yet. After that 0.125% and the test dose, patients usually get quite comfortable, and they start to get some motor block if your catheter is in the right place. They can still move their legs though - just heavy. If your catheter is in a vessel, you won't notice much motor block (just the minimum from the 0.125%), and you may get the perioral numbness, tingling, tachycardia with epi, etc. If your catheter is intrathecal, you will get a profound motor block and probably hypotension too.
So the test dose is really there to test the catheter. The 0.125% is there for quick comfort, and to help prevent patchy/one-sided epidurals. In private practice, I don't have much time to spare, and a one-sided epidural is something I'd rather not deal with when they call the section. We take call from home and I have to trust that catheter is working the way it should.
Personally, it seems like 0.25% via Tuohy along with a test dose is quite a bit of local, and would be more likely to cause hypotension. Just my 2 cents on all of this.