The quick fix for lack of signal lock is to unplug the DI/O for a few seconds, and power it back on with the signal present. That usually takes care of it. If that doesn't work, try a cheap digital cable from Rat Shack first. Some people have had good luck with those. There are some mods available that will increase the ability of the DI/O to lock, but you really want to avoid these if possible, as one of them reportedly has an adverse effect on sound.
A digital signal usually has one master clock, and the other end of the loop slaves to it. A CDP takes it timing from the source, and cannot slave to an external clock, so a CDP will almost always be set up as a master clock. Most DACS only have an external sync mode, in order to create a properly configured digital loop. The DI/O gives you sampling options mainly for A to D use, where you have to set the sampling rate for conversion of the analog signal to digital.
However, the crystal in the DI/O is a lot better than some give it credit for. If timing in the DI/O is better than the source, setting a sampling rate will actually create a mis-configured digital loop with two master clocks...but the DI/O will catch the samples and perform a crude form of reclocking. Sometimes this helps the sound, sometimes not. Note that if you set a sampling rate that is not an exact multiple of the source, you won't like what you hear ( a 44.1 KHz CD can be converted with external sync, 44 KHz or 88 KHz. If you try 48 or 96 KHz, it won't be pretty.)