Trane C Wire

Working on getting a RTH9580WF installed on my Trane AC/Furnace. There is a terminal labeled C inside the unit and I have a 8 wire thermostat wire. So I wired the brown wire to the C terminal and proceeded to hook up the new thermostat and got nothing (no power at stat). Broke out the volt meter and with the furnace door switch activated I tested the C terminal in the furnace and got 0 volts. Went down the line and found 26v at the R terminal. Moved my brown wire down to R, tested voltage at the thermostat brown wire and get 26v at all times. Reconnected the new Honeywell and still nothing. I am suspecting a bad unit, but wanted to see what you guys think before I take this one back. I expected the C terminal in the furnace to be 24v, but I'm not getting it with my volt meter. The R terminal currently has only a water sensor connected to it. Here are the pictures. This picture was taken before I moved the brown wire from C to R. Image: http://i73.photobucket.com/albums/i204/tul9033/IMG_3448_zpsmfalxax8.jpg Image: http://i73.photobucket.com/albums/i204/tul9033/IMG_3450_zpsdh24wtpp.jpg