Well, a previous poster stated correctly that the receiver never powers off completely. So when the Harmony doesn't turn the receiver on (the light doesn't come on), and the TV comes on, I get the Press OK to watch TV message. I press OK and the light and receiver come on and I'm back in business.
Initially, I thought this was a remote issue when in fact this is the way it works. The message should say Press OK to turn on receiver, as the TV is already on in this case. A bit confusing, but I get it now. In fact, when it goes astray like I described, I now prefer to press OK to turn the receiver on which is quicker than going through the Help menu on the remote.
And as per your previous suggestion, I specified VIP1216 as my PVR when programming my remote which worked beautifully. Harmony don't have the proper setup for the VIP2262 box yet, but the older one works. Thanks for the replies.