MR816csx reverts to spdif

Recently, since installing OS Lion 10.7.2, when i turn on my Mac, my MR seems to not want to lock in to Internal, where it is set.
Instead, i get a blinking led on the spdif setting.
I’ve checked my Mac preferences, and all seem correct.
To fix, i must go to Apple preferences, click on the Steinberg FW window, and change the setting to Internal.

I’ve unplugged and re-plifed in the firewire cable…no help.
I have updates to the MR installed.
Anyone have a clue?
I emailed Support 3 days ago, and so far no response, other than “we’re forwarding you’re information.”

Thanks in advance.