Grant,
What "mode" is the radio in. I ran into this same situation yesterday with another ham. Windows box, signalink, 857D. He was trying ARDOP but the symptoms were the same. Had red PTT on signalink and no PTT on the radio. We swapped the 857 to "DIG" mode and everything began working. With packet, try "PKT' mode. Forgive me if we have already discussed this.
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73, de KM4ACK
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km4ack