Update to the fix on this issue.
Thanks to James' quick response to my issue, we found that Zone 1 and Zone 2 were both pointing to Terminal 1 (instead of 1 and 2 respectively). I guess the terminal function was added in v1.2.3 and my Zone 2 did not convert correctly to terminal 2 during the upgrade process. So if you've recently upgraded to 1.2.3 it would be a good to idea to validate that all of your Zones are mapped to the correct terminal. I actually really like the terminal concept (now that I know about it), would have saved me some rewire work when I originally set it up!
Also, had to use IE to right and left click the zones. Chrome did not work well for this process.