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Thanks Richard, but problem solved. Simple bad cable/connector. The VS2000 is a bit more particular that the other spdif devices. All is functioning as needed. (My system parameters are a bit different BTW - 'Internal' , 'Digital' and 'External' or something close to that.)

SPDIF output from the VS2000cd to an M-Audio(AVID) Fast Track Ultra audio interface works fine as does output to spdif reference monitors and an audio receiver. SDPIF output from the M-Audio(AVID) Fast Track Ultra works fine to the reference monitors and receiver. However the VS200cd complains...