It's always complained about the DAS, but the DAS (the DB2 Administration Server) is always happily running.
Today I stumbled across something that told me to issue the following command:
I then ran a
!!!! WORKED LIKE A CHARM !!!!
After that, I was able to successfully verify the instance, connect, and create the db I was trying to create.
Sorry - wish I had captured some screenshots along the way, but now that I've fixed it, I can't reproduce ;-)
At any rate, hope this helps someone.