Markoz,

I'm slapping my forehead, sorry for wasting your time.  I re-read the installation instructions for 2.3 and it finally got through my thick head that it said -100, -200 OR freight installed before 12-25-09 required 2.3.  I uninstalled both 727-100 and 200, downloaded and installed 2.3 and then reinstalled -200.  Now the -200 autopilot works fine and the other functions also.  The only thing it didn't fix on the -200s is that one blasted overhead bin!  I'll try the simicons and "C" that you recommended and that will  probably solve it.
Thanks again for your responses and sorry for my inability to read, understand and follow the instructions.