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I am not understanding the error messages for initial conditions. The attached file gives a Too Many IC error. Remove one -- just for the heck of it-- and it will say Too Few IC. What is the real error here?
Mathcad 14 error messages are particularly poor. Your problem here is that you have a DAE system, with algebraic as well as differential constraints. In such a construct, the initial values must satisfy the algebraic constraints. Here, they do not.