So i created a rigged character… and all the bones and controllers are now in the subnet. My problem is when I select a controller from the scene view pane, the parameter and network pane dives down inside the subnet where it highlights the actual controller node.

I want the network pane to not dive down inside the subnet and not reveal the actual controller node. How can I get around this?

this is a function of your desktop and the fact that your rig isn't in a locked asset

assuming you're not using the panel links, the desktop wants to show you the parameters of the node you have selected (coltroler or bone etc) in order to do that it has to move the desktop to that level…
you can prevent this by linking the network pane and the parameters pane using the little number thingy at the top right of each pane….

or create an asset out of your rig.

Thanks! Yeah, locking the asset made the difference.

Now that I've locked my asset and created parameter interface for the my rig… Do you know how I can allow dynamic selection on the parameter interface when something is selected on the scene view?

For example, if I select the right hand controller on the scene view, I want the parameter pane to reveal the tab that has the input entry for this controller. I noticed that the toon character rig has this feature.

you can use select scripts and something like
stdswitcher ( 3 3 3 3 )
etc

This feature should be done automatically by Houdini, nothing fancy required. It is controlled by a toggle in the Preferences -> Objects and Geometry -> Preferences tab titled Automatic Parameter Folder Flipping when Objects are Picked in Viewer.

true…but it can get messed up sometimes…
at least it could when I was rebuilding multi-level otls (copying from other assets etc)