I think you have the wrong version of the DDE.
This happens when using version 1.0 or 1.01 with Nuendo 2 or Nuendo 3.
You need version 1.10
Contact support for the update, as you will need a new license for this. The old iLOK will not run this version.
I am assuming of course that you know how to set the encoder up correctly, as the metadata options must be right or it will go seriously fruit shaped.
Did you have it set to 3/2 Audio mode?
If so, then it is definitely the early version designed for Nuendo 1.x