Having difficulties getting the TNC (KPC3+) to Connect to a Host.

Kantronics KPC3+
Alinco ALR-22 2M Rig
Serial Cable between PC and KPC3+ is fine and connection is fine
Cable between KPC3+ and Alinco has been verified pinned correct
Using Windows Hyperterminal

When I click Connect hostname, I see
--Red Transmit light on KPC3+
--Flashing on the Alinco (transmitting)
--My Yaesu Handi-Talkie hears a tone
--The host doesn't make a connection, though

When I key-up the Handi-Talkie, the Alinco doesn't respond

When I put the regular microphone back on the rig, it receives and transmits

I read somewhere that I have to set CD to Software (vs Internal) - no difference

I've done the full reset -- no difference

I've done the soft reset -- no difference

Abaud is 9600
Hbaud is 1200

I was able to follow the KPC3+ instructions where you open up the squelch and raise the volume until the green receive light comes on and then turn up squelch -- no difference

Question: Is there some setting I need to be making on either the Radio or TNC to tune it up?

Thanks in advance,

Paul (KI6USA)