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Tried the N option, don't see the hd option in playback engine.
That's odd. If Digitest sees it, but protools doesn't; I'd say de-install Protools, repair permissions, restart and re-install Protools. If you know someone with an older Core2 Duo MBP, you could test your chassis rig on their laptop.
Not sure what version of Leopard you're on - I'd recommend 10.6.8 if it will run on your i7. I haven't done Lion yet, so I can't help you there...