Found it!!
Inputting AES Dig signal from other sources proved that the L22 Dig In was working properly. Also determined that the AD10 was outputting AES Dig signal properly (well, sort of). Digging into the L22's settings menu, I found an option checked that said something like 'Mute Digital Input on Error'. So I unchecked that option and "boom!" there's my digital audio input signal.
Made a phone call to Lavry tech support and it turns out that my unit was one of the first units produced and has some setting in one of its chips that is not passing certain digital data correctly. He assured me that it has nothing whatsoever to do with the integrity of the audio but that it will cause things like the option I found in the L22 settings to reject the signal. So, all I have to do is keep that option unchecked and I'm good to go. Minor nuisance. Furthermore, he said they have a mod for that which will fix this issue so if I wish, I can send the AD10 in and they will fix it. I just might do that.
I'm just glad it was something this simple and that nothing is "broken".
AD10 sounds great, btw, Now I just have to get used to hearing things a little better than what I've gotten used to.
Thanks to all who helped or at least thought about it...
JL