EMM Labs CDSD SE doesn't LOCK onto CD/SACD?

I recently bought a used EMM Labs DCC2/CDSD SE combo (to replace a Pre-SE set) and I'm having some trouble I'd like to if anyone can help me with. I can't get the CD player to output noise (either Redbook or SACD). They load, they identify as CD or SACD, they spin, just no sound. I have no problem with the turntable, via the analog connections. So it's obviously nothing to do with the preamp section of the DCC2, or the connections through the amp and speakers. It must be something I'm doing wrong but for the life of me I can't figure out what. So let me tell you where I'm at and see if you can see what I might be missing.
1) One thing I notice is that neither for CD or SACD does the "LOCK" ever light up on the front of the CDSD.
2) I have connected the Black, Blue and Red optical connectors supplied with the unit exactly as indicated in the supplied diagrams, which is also the way my original Pre-SE Units were connected. I also tried using another set of optical connectors I had from my units but still no joy.
3) The CDSD "INT/EXT" switch is set to EXT as advised in the included diagram and is also the way it was when received from the seller.
4) The CDSD "OPTIC/BNC" switch is set to OPTIC as advised in the included diagram BUT is also NOT the way it was when received from the seller. My old unit was also set to OPTIC so I was a little bit curious as to the seller's being set to BNC? But I also tried with the switch in the BNC position but still no joy.
5) When the CD is spinning and should be making music all of the lights on the front of the DCC2 are lit as indicated in the included diagram - LOCK-44.1kHZ-WIDE-ST. As mentioned, the only missing light is the LOCK light on the CDSD.
6) After I got everything hooked up and power on I did notice a light crackling/static-y sound coming from the speakers even before a CD was put in. When I tried playing a CD the light crackling/static-y sound remained but no music was produced. The odd thing is that when I tried to play a SACD the light crackling/static-y sound went away when I hit PLAY. But again, no music was produced.

I've been on this for several hours and feeling very stupid and frustrated because it seems like it must just be something I'm missing. I really hope you can see something in here to help me along the way.

Thanks for any advice or help anyone can offer.
Tim