I live in New Jersey, where they only inspect emissions. When I took my for the state inspection, they got a fail on the OBD check engine light. They claim OBdD indicates it will not light. (no fault code shows up) When i start the engine and the dash lights up, the check engine light is lite as normal and goes off light the rest of the initial lights. It is a 97XK8 with 49,000 miles and it runs fine.

Has anyone experienced this?

 

that is strange, perhaps they meant the OBD system indicates that not all systems are in a 'ready' state, and the vehicle won't pass any state inspection until it does. P1000 is incomplete, P1111 is all good. Have you had any service performed recently?

 

Despite what they say at the emissions station, have the codes read again at an Autozone or Advance Auto Parts and let us know what results you get.