Sony PVW2800 to KL box to Kona LHe - wiring issue?

I know that I have the wiring from the LHe to the KL box correct as there really isn't any other way to wire the 60 pin cable and the triple BNC cables (well labelled).

I'm using the 2800 to transfer Betacam tapes to the PC. So, I connected the 3 component BNC cables to the Video out "component2" on the 2800 and the component in on the KL box. I also connected 2 XLR cables from the "audio ouput" ch-1 and ch-2 on the 2800 to the KL's balanced audio ch1 in and ch2 in.

Now when I use AJA's Machina on my PC I get the video display in the capture window (under setup I used video: 720x480 and audio: analog). but no audio. The "AJA Device Status" says: Active, 720x480@29.97i, component SMPTE NTSC, Analog. When I click the record button I get an error: "VTR Not Ready. Please check VTR status and try again." and the "AJA Device Status" changes to "Not Active".

Is there something wrong with my wiring or software setup or both?