You are definitely correct that Spark Output MUST be inverted when using the VB921 or you will cook it. When DAT240Z sent his cooked unit in the the first time around I found this setting set to NO and the VB921 was therefore cooked, we fixed it and returned it and the second time he sent it in it tested out just fine and the setting was still correct from when we had sent it back, I suspect something else in the install or settings just wasn't right so he hadn't gotten it to pop off for some reason yet (I've seen loaded up plugs make you think the ECU is installed wrong, change the plugs and it fires right off). Carl if you stll need help with the install (not sure where it stands now) maybe I can point you in the direction of someone who can help with it. What area are you in again? I've got connections on both coasts that can help, and possibly in MO as well, if I recall you weren't coastal, don't remember off hand exactly where you were though and I'm not in the office to check at the moment (home with a 4 day old baby girl!).
As for everyone else, SPARK OUTPUT MUST BE INVERTED when using a VB921, and Dwell Control must be enabled. Check out the MegaManual (www.megamanual.com) or the MSnS-E manual (http://www.msextra.com/manuals/MS_Extra_Manual_Index.htm) for full info on tuning the dwell, both repeat the need for these settings with the VB921's MANY times for exactly these reasons. People just try to plug them in without reading the manual, burn them up, and then blame the vb921. Granted I know there is alot of reading but the things are rock solid when treated properly and the documentation does show you how to do that.
I've also summed up the ignition pieces of 'squirting 82-83 280zxt at http://www.diyautotune.com/tech_articles/how_to_megasquirt_your_280zx_turbo.htm which also mentions this again in the config section since I know alot of people won't read the entire manual.
BUT-- that said... please read the whole manual. I know it's long, but this is your baby you're talking about here... this stuff should be fun to read!