rlisanti, can you answer a couple of questions that may help?
Can you watch the SKY picture on your tv through the DVD recorder without recording?
Are you trying to view/record a restricted/PPV channel, such as Sky Box Office, PremPlus etc?
Does the Copy process work correctly?
Are you attempting to complete a timer record using the EXTLink, as per Zebadiah's post above?
Do you have the Sky box in standby when trying this, or fully on?
Sorry for being pedantic, but it looks like there is a bit of confusion about what you are trying to achieve.