Here's what's happened friend.
You bought a receiver on the open market. Had it successfully added to the account. When you called, you provided Dish network with the smart card number married to the receiver. The 211 utilizes an internal card and has an option to override with an external card.
I of course assume the CSR you spoke to activated the receiver. This rules out an account balance issue or inconsistencies with the smart card number married to the receiver and Dish network information.
While true, the software could be out of date, simply turning the receiver off and waiting on a hit is insufficient. And wrong.
Honestly, there's not a lot of difference between one software version and another. If the receiver contained a factory software revision, then yes. It wouldn't allow you to proceed without the activation.
When you installed the 211 did you run a check switch?
New Eastern Arc installations carry with them the newer G3 cards. Older Eastern Arc installs could potentially carry a mixture of receivers. Secondly, Eastern Arc installs only cover decoder requirements, not necessarily smart card specs. A 211 is an EA compatible receiver. Ergo, it should work.
I'd lean towards either a factory/software issue. Check the software version on the receiver against a current software version easily located online (Menu 2 times, line labeled software version). If the software outdated, then obviously we need to update it. Run a check switch test (menu, followed by 6-1-1, highlight and select check switch, select test)- THEN put the receiver in standy. After that, it depends on if the reciever updates or not.
From there we're looking at something stupid like a typo on the CSR end, the receiver not being shown as activated on the account, or an actual problem with the receiver.
Being issued a smart card may, or may not resolve the issue. Depending on when that receiver was transferred over, there could be a mix up there. But that's like slim possibility #3.