NK or KY make it impossible to create a PAN

I have been able to make a PAN with a new PAN with these settings on the Coordinator:

NK=0
KY=0
E0=1
EE=1
change ID from 0 to 1050

On the routers via USB:

KY=0
E0=1
EE=1
change ID from 0 to 1050

power off all devices, power up Coordinator, wait 10 seconds power on all Routers.

If I try to use a custom KY=1040 or if I try to use a NK=666 I cannot get the routers to join the PAN.

Is there a step by step guide as what you MUST do first to get encryption working for a custom KY or a NK values?

Thanks,
Joe

Yes there is. Check the Security section of the product manual for the XBee module you are using. There are examples directly in it that show how to use these settings.