I've had a similar experience w/ my Motek box. It always drives east without issue but sometimes, going back to the west it will Err2 on me. The relay does not pick up, so it appears to have mechanical issues. Since it is instant Err2, it seems it must need to detect the relay operation as well as the pulse, or it will Err2 for that as well. I only have to make a firm tap on the top of the case to get it to begin responding again. Occasionally it will act up a couple of times in a row, but usually it works fine again for a while.
I've not found any usage pattern to the failure, sometimes it just quits on the 1st move west, others I can be stepping, or multiple drive-stop-drive actions and it will error out. The point in the arc doesnt seem to have any bearing either. It's is annoying at times but wasnt worth returning it, back when I could. I've not looked into it to see what relays it uses, but I agree skysurfer, there appears to be some reliability issues w/ the parts selected for this unit.
rodder, do what Lak7 said and try to drive the thing with a 12v battery or charger. You shouldnt need to disconnect the pulse wiring to test the pulse output/wiring. In fact, it is better to leave it connected, that way if the pulse out is working and your cabling is all ok, the counter will count, but it will be slower than you are used to seeing of course. If you dont see counts, using an extention cord, take the 3000 out to the motor, and reconnect the pulse wiring with a short section of known good cable (or individual wires) and drive it with the battery again. That will eliminate all variables and should identify the device with problem.
The last possibility is that the pulse/wiring is OK, but you dont have any drive output. That you will need to verify with a meter.