One of the five horizontal LED indicators should be lit, indicating the digital sampling rate.
For 32kHz no LED will be lit, but the DacMagic 100 will still operate.
Make sure that the digital output from the DVD player, Skybox (or any other source) is set to two channel PCM and not other outputs such as Dolby Digital, multichannel, bitstream etc.
The "Incoming Sample Rate" LED lights should be on and will indicate the digital sampling frequency.
Note: For 32kHz no LED will be lit, but the DacMagic 200M will still operate.