DXS + Sblive + Win2k problem...

Ok, I've got a weird one. Here's my setup:

- Win2k, CDJ, database of MP3's - Sblive, with liveware 3 - Midiman Co2 to convert sblive spdif -> toslink optical - DXS w/optical ins

What's happening is that the DXS thinks the sblive is playing, even when it's not. The little status light is pulsing and everything.

I don't think it's the Co2, because if I select "mute all" on the volume control panel, it stops. The DXS sees the input as being "on but inactive". What's even weirder is that if I mute every single output manually, I still have the problem. Apparently "mute all" isn't the same as muting everything.

The problem occurs whether or not I have "digital output only" selected.

Has anyone else seen something comparable? Any advice? It's not all that much of a pain to manually "mute all" before using other sources, but it is kind of weird.