In the S+ section in the first category, find the 'how to guides' flip cards, go to the output test #34, it will test the lockout signal.
Some things you said didn't make any sense, the only function of the cc-16 is to accept the type of metal object used as a sample, in your case an American quarter, the fact that the quarters were accepted and went to the hopper is a clue, either the cc-16 is working, or it has been modified to accept coins (rake on the back shimmed out) Its a lot easier to do what you are doing by just dropping the belly door, take the bracket off the coin head and you will have the entire unit available with the door closed to actually drop coins through and observe what is going on!