Answer:
"Goyo Guardian's" effect activates when it destroys "Handcuffs Dragon" by battle and sends it to the Graveyard. "Handcuffs Dragon's" effect activates when "Goyo Guardian" destroys it by battle and sends it to the Graveyard. The effects activate simultaneously, if both players actually choose to activate the effects. (we will assume that they have)
"Goyo Guardian's" effect is controlled by the turn player, so it is Chain Link 1. "Handcuffs Dragon's" effect is placed at Chain Link 2.
Goyo Guardian --> Handcuffs Dragon
"Handcuffs Dragon" resolves first, equipping to "Goyo Guardian". "Goyo Guardian's" effect disappears, because "Handcuffs Dragon" is no longer in the Graveyard.
Curtis Schultz
UDE Netrep
CurtisSchultz_Netrep@hotmail.com
"Removing your finger. That's a good power, Uncle Glen. I must have it..."