the TE 27 doesn't work??

Hello All
Well I made the plunge after reading alot and listening to you guys and your advice and then reading a post from ole Polk himself about discontinuing the 75 mhz system in favor of the newer 2.4. He also wrote that the 27mhz will continue on. I ordered the 27 system along with an elite dual voltage unit to power it and an extra fan to cool it. Now I have it and the only trouble is I can't get the dang thing to work.
I followed all the directions and I think they are a bit lacking. I put in fresh batteries but the light on the transmitter keeps blinking at #1. I have linked the transmitter to the receiver but I'm not sure that I set the channel properly. From the transmitter I can hit a key and the code signal light will blink on the receiver but checking the voltage at several points along the wires I am getting the full voltage to the track? From my understanding this is good except the receiver is supposed to be able to change this with input from the transmitter. To you guys that have this system I bet I'm doing sonething stupid but what is it?? I went with this system because it was supposed to be simple.
I currently have it all unplugged and batteries removed hoping that it will "forget" whatever I did and I can start over.
Thanks
Todd