I believe this was caused by some change to the media director device core/hybrid which screwed up the device. I was unable to get it working again and had to re-install evrything.
I am concerned that there doesn't seem to be a way to correct a device that fails in this way by just "one click" reset back to original config. By re-installing because of a problem like this all settings and data is lost.
This was a test system and losing everything was no big deal, however for production systems his could be a problem. Especially for the less linux savy users. I am going to attempt to recreate the problem to see what caused it. If I get any more info I will post it here.