I figured it out:

Documentation states that the CMS user requires the following:

IUCV *IDENT resid GLOBAL
  or
IUCV *IDENT ANY GLOBAL

When it should have read:
IUCF *IDENT RESANY GLOBAL

Frank M. Ramaekers Jr.
Systems Programmer                   MCP, MCP+I, MCSE & RHCE
American Income Life Insurance Co.   Phone: (254)761-6649
1200 Wooded Acres Dr.                Fax:   (254)741-5777
Waco, Texas  76710

-----Original Message-----
From: The IBM z/VM Operating System [mailto:ib...@listserv.uark.edu] On
Behalf Of Les Geer (607-429-3580)
Sent: Thursday, August 20, 2009 9:27 PM
To: IBMVM@LISTSERV.UARK.EDU
Subject: Help with LIBRCMS...

>...anyone been down this road lately?
>
>I'm attempting to install the LIBRCMS package (from the z/VM
"Downloads"
>page.
>
>1)      Everything has been cataloged
>2)      Server is running
>3)      Directory entry for CMS user has been modified (IUCV stuff)
>4)      Issue LIBREDIT and receive:
>
>STN009E APPC/IUCV Error. Reason code =    2
>   Abstract of reason codes:
>   -------------------------
>
>      01    Interrupt handler error
>      02    Connection to *IDENT error
>      03    Server in use. Try again in a few seconds
>      04    Resource ownership lost
>      05    Cannot be terminated normally
>      06    Receive Data error
>      07    Send data error
>  For more details, please refer to the documentation
>Ready(00002); T=0.01/0.01 11:50:27
>
>Clues?

Does the CMS user ID have the following directory entries?

OPTION MAXCONN n
IUCV ALLOW
IUCV *IDENT resid GLOBAL
        or
IUCV *IDENT ANY GLOBAL

Best Regards,
Les Geer
IBM z/VM and Linux Development

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