Spoke to Joe at Rustici and he helped me out with the sequencing rules:
Added this to each <item> at the SCO level in the manifest:
<imsss:sequencing>
<imsss:deliveryControls tracked="true" completionSetByContent="true" objectiveSetByContent="true" />
</imsss:sequencing>
And then adding another set of sequencing tags for the Global level:
<imsss:sequencing>
<imsss:controlMode choice="true" flow="true" />
<imsss:deliveryControls tracked="true" completionSetByContent="false" objectiveSetByContent="false" />
<imsss:objectives>
<imsss:primaryObjective objectiveID = "PRIMARYOBJ" satisfiedByMeasure = "true">
<imsss:minNormalizedMeasure>1.0</imsss:minNormalizedMeasure>
</imsss:primaryObjective>
</imsss:objectives>
</imsss:sequencing>
Hopefully this helps some one else in future.
Stan Keathly