Much thanks to the people who responded, on and off list.

The problem has been solved!!

1) apparently my VTAM colleague was mistaken in thinking
that the VTAM-OSA connection could be dealt with separately
from the OSA-network connection. VTAM will *not* properly 
activate the lines unless the OSA is correctly working on the 
network. (In OSA/SF it must show up as 'Enabled', mine was
listed as 'Link Failure').

Important note from IBM support: the little 'terminator' plug that 
came with the OSA can be plugged in (if you still know where 
you put it! lol) and VTAM will consider it an OSA attached to a net.

2) We did have to correct the SAP in one of the systems meant
to share the OSE. After the OSA was properly networked, we were
getting alternate LPARs working, till I remembered that part. Once 
the SAPs were set up correctly, both VTAMs activated OK.

3) As mentioned, the MAC addresses had to be set up correctly.
Our HIS server did manage to connect to VTAM via the OSA
after being correctly set up with the SAP and MAC address.

Thank you!!
Shimon
 

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