IBM DS3300 Storage on IBM x Series 3650 with Serveraid 8k

We recently purchased an IBM DS3300 storage system for our IBM x3650 server. The server is running Windows 2003 with an IBM Serveraid 8k SAS controller.  I have hooked up the DS3300 to the SAS port on the 3650, configured the arrays and assigned the arrays to the host. The problem I am having is that Windows will not see the DS3300 array and the IBM storage manager software will only manage the DS3300 out of band.  When I try to start the IBM Storage manager service is dies with the following error...

Message from SM agent service: SMagent: The SMagent service attempted to start but terminated. Possible causes include:  [1] The access logical drive is disabled in NVSRAM. [2] No controllers with compatible firmware were found. [3] The default logical unit number (LUN) assigned to the access logical drive (typically 7 or 31) is not in the range supported by the host or is already in use by the host for another device. See your storage management documentation for more details.    

I have already upgraded the Serveraid drivers and firmware and installed the latest version of IBM Storage manager from the website. I have rebooted the DS3300 and the 3650 server several times.

I have a case open with IBM, and their last idea was the firmware upgrade. Does anyone have any ideas???