I figured it out and got tape redirector working perfectly. The problem I had was on my host *server 2012* I never had proper drivers installed for the medium changer. It showed as unknown medium changer. I updated the drivers and followed the instructions in the pdf http://www.starwindsoftware.com/...

I have the same exact setup and problem as the OP states in the first message in this thread, but I don't understand the solution. Do I create 2 devices on the Server 2012 host?