rfog, there is something wrong with that sensor of your reader... my sensors work, in every firmware: 1.7.1. and both the 0401 and 0408 beta's.
does it help if you lock and unlock the sensors?
have you tried renaming the dr.ini file to dr.old.ini and then resetting the device? There might be some old settings from the dr1000.ini file that got transferred and is now putting the right sensor in an undefined status.
what version of the micro application do you have (settings => device info)?
I have version 0.41
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