hk401b no movement in HH mode

I am trying to setup an hk401b gyro with turnigy MG930 tail servo (http://www.hobbyking.com/hobbyking/store/uh_viewItem.asp?idProduct=9391) on the bench.  When I power up system, the gyro initializes and enters Heading Hold (HH) mode as witnessed by led indicator.  However, any rotation of bird on the bench does not produce any tail servo movement.  If I provide rudder movement via may Turnigy 9x(http://www.hobbyking.com/hobbyking/store/uh_viewItem.asp?idProduct=8992) transmitter, the tail moves appropriately.  If I switch into rate mode, the tail servo works as expected when helicopter is rotated on bench.  Thus the gyro is working in rate mode, but not heading hold, as far as I can tell.  I have the transmitter set as follows in gyro menu...

Gyro Sens Menu
-------------------------------
State = Act
UpRate = AVC 60%
DownRate = NOR 50%
Model = GY

There are no subtrims, trims, endpoints, etc on channel 4 rudder.

Any suggestions? ideas? Thanks for reading.

Thanks for taking the time to respond.  However, I do not have HH at 50%.  I have the UPRATE (i.e. AVC HH gain) set at 60% and DNRATE (i.e. Normal Rate mode gain) set to 50%.  I can verify that channel 5 on Transmitter is (via the Display menu) outputting that value.  The led indicator on gyro has steady light after initialization so it says it is in HH mode.  Also, I did not mention in my OP, but I tried moving the UPRATE gain from 32 all the way up to 100% without any change in how HH is not working.

Would more info be useful?  Any thing specific?  Or is this one of those, "Your such an idiot, it is not worth responding" situations?

To restate my problem.  When bench testing gyro, it seems to work in rate mode (by working I mean, the tail servo is controlled to counter act manual rotation of heli and in correct direction), but does not move the tail servo when performing same action in heading hold mode.  My transmitter is set up (having tried several gain values) at 60% gain in head hold mode and 50% gain in rate mode. 

Any help would be appreciated.  Make it a great day.

Thanks billius, I read your link and can confirm (except for differences in radio) that is the procedure I followed.  Similar as well to finless video.  In the Turnigy 9x, the gyro switch is the same two-way switch as the gear.  My settings above show that when the switch is up, use HH mode with 60% gain.  When switch is down, use rate mode with 50% gain.  I can confirm via the gyro led indicator that this switch works correctly.  That is why I can say, things appear to be working in rate mode but not HH mode.  I found this link (http://rctech.blogspot.com/2011/03/turnigy-imax-9x-tx-hk-450-setup.html) that shows you how the transmitter gyro menu looks like and is identical to mine.  The only thing I can think of is that my method of testing the gyro is not valid.  However, even finless does the same thing.  With heli on bench in HH mode, I rotate heli and watch for any tail/servo movement.  Maybe, this is just not good enough.

thanks again!

Because there is not an issue with the transmitter.

1) I have validated my settings with others on the net
2) I can move the tail rudder using transmitter
3) Using the transmitters display option, I can see what each channel is outputting.
4) gyro switch is functioning properly.  When up, the gryo says it is getting HH signal, when down, the gyro says it is getting rate signal.

All this points to either the gyro, or me not understanding how it works.  So I am asking community to validate that my testing methods should work.  As far as the gyro mod is concerned, I did not hot glue, but I did add padding internally.  Since the gyro mod really is only relevant to making the gyro run smoother when heli is in air, I don't think that has any bearing on my situation.

Is there any other way to test HH mode?