This is why gaited horses get a bad rap and this is why there are so many of them abused.
I have Tennessee Walkers, so I am no help whatsoever regarding Paso Fino gaits but the basic horse training principles remain the same, regardless of breed.
The crossroads in training begin once the rider begins to move the horse into the various intermediate gaits that are specific to their breed.
Liz Graves is the "go to" in the gaited horse world. http://www.lizgraves.com/
This is an old Lee Ziegler site that Liz has presented; it may be of some help.
You can also look for some YouTube videos that show how Paso Finos should move for the show ring.
My friend laid her 22 yo Paso Fino to rest in January with cushings/IR (they are on the predisposed list:(. She just bought a five year old. Her horses are strictly trail horses but I can assure you when she works with them on their gaits, it is nothing like what you describe that man told you to do.
Stick to your guns regarding your methods of basic training, read Liz Graves, then try to hunt down a fair-minded Paso Fino trainer in your area and at least observe how they keep these horses in the required gaits for the show ring.
They use some horrendous looking bits, by the way. I grow weary of people thinking long shanks on Walking Horses are evil --- they've never seen the bit that goes in the mouth of a Paso Fino for the show ring. If those bits with the "spoons" on them aren't required, I would use something else in this horse's mouth.
Hope this helps some:)