  Sensitive, high resolution images of the double-double radio galaxy PKS
B1545-321 reveal detailed structure, which we interpret in the light of
previous work on the interaction of restarted jets with pre-existing relict
cocoons. We have also examined the spectral and polarization properties of the
source, the color distribution in the optical host and the environment of this
galaxy in order to understand its physical evolution. We propose that the
restarted jets generate narrow bow shocks and that the inner lobes are a
mixture of cocoon plasma reaccelerated at the bow shock and new jet material
reaccelerated at the termination shock. The dynamics of the restarted jets
implies that their hot spots advance at mildly relativistic speeds with
external Mach numbers of at least 5. The existence of supersonic hot spot Mach
numbers and bright inner lobes is the result of entrainment causing a reduction
in the sound speed of the pre-existing cocoon. The interruption to jet activity
in PKS B1545-321 has been brief - lasting less than a few percent of the
lifetime $\sim (0.3-2)\times 10^{8} yr$ of the giant radio source. The host
galaxy is located at the boundary of a large scale filamentary structure, and
shows blue patches in color distribution indicative of a recent merger, which
may have triggered the Mpc-scale radio galaxy.
