Even with my jaded view of DISH CSR's if you are indeed getting these answers this is a new low for them unless there is more to the story. Your last comment is a little more info than you gave before.
So you can use the module to scan the locals, it does scan the locals, but then you get a message. I had thought you could not use the module at all.
So after scanning and hitting save, Can you post exactly what the message says? And recheck the message alert number.
Until you hear back from Zach I would start with an update (Hit) to your receiver, then if that does not work force a rescan of the satellites, which should lead to a guide update, then try the module again. Something Zach would have to do is see how your account is provisioned though I don't know if that would affect using the module.
I suppose it could be the module isn't working correctly.