Using "As Identify" clause generates duplicate key error

We have created a new ddl file which has the following as the first field
listed in the ddl:

0001.01 VndKey Numeric(20) As Identity(Increment by 1)
0001.02 Primary Key,

Now, before anyone starts yelling about using imbedded SQL in the program;
it is not going to happen....beyond my control, but the following code is
what writes the new records.......

0007.70 DaysSubm = nDySubmit;
0007.71 DaysNCrd = nDysCrd;
0007.72 MinAmtRq = nMinAmt;
0007.73 MaxAmtRq = nReqApp;
0007.74 AutFaxNo = nFaxNo;
0007.75 AutFaxDy = nDysRsnd;
0007.76 AutFaxRs = nResend;
0007.77 Write Policy;

Now, at one point this file had a usr open and close attached to it, and
maybe that was part of the problem, but it would never write a new
record.....always tried to write the same old key (16)......

We finally yanked the IDENTITY clause out of the file and moved on, but I
thought I would run it past the group and see if anyone had any
ideas.......

Douglas