T1 alarm on Cisco 2600

[pgaliardo]

I am trying to configure a Cisco VWIC-2MFT-T1-D1 interface card in a cisco 2600 series router. We need to connect this to a leased T1 line from Verizon. Show controller command shows:
HACKENSACK_2620#show controller t1 0/2
T1 0/2 is down.
Applique type is Channelized T1
Cablelength is short 266
Transmitter is sending remote alarm.
Receiver is getting AIS.
alarm-trigger is not set
Version info Firmware: 20000922, FPGA: 15
Framing is ESF, Line Code is B8ZS, Clock Source is Line.
Data in current interval (0 seconds elapsed):
0 Line Code Violations, 0 Path Code Violations
0 Slip Secs, 0 Fr Loss Secs, 0 Line Err Secs, 0 Degraded Mins
0 Errored Secs, 0 Bursty Err Secs, 0 Severely Err Secs, 0 Unavail Secs
Verizon has run loopback tests from their office and claim to "see" this router.

The Alarm LED is lit as soon as we plug into the wall jack that goes to the smart card. Inserting a hard loop cable in the interface clears the alarm.

I've tried every configuration. Line code, framing, etc are set as per Verizon's specs. I've tried clocking internal and line. Neither brings ths controller to UP. Any help would be greatly appreciated.

Thanks in advance.