Turn machine on. Let it boot.
At that point the green LED on the drives are on. Are the RED also on? If so this is correct. X and Y handles should nove with no effort.
Press 3 to enable the drives. At this point the RED LED on the drives should go off and stay off. Do they?
If the RED LED are off, the drives are on. Try moving the X or Y handle. They should resist your effort. If so maybe the BMDC is not seeing that the drives are on. Check the fault lines back to the BMDC.
Also check mother board for damage around the area of the CMOS battery. Just a thought.