Update for anyone that this might be an issue.
I was pulling out my hair trying to figure this out without any success and figured like someone else said here that I now have a $200.00 paper weight, well I got it up and working again.
After doing the latest ios update on my ipad 3 (9.2.1) it would not see the VX. The guitar symbol at the top right would light up indicating that the VX was connected but still no sound. After uninstalling POD and reinstalling it still nothing. I had tried everything then one day I plugged it in and out of the blue it was functioning perfect, go figure :) Anyways what I figured happened is that the ipad had to be restarted after the update. I would not have thought to do this but the battery had died so.....
I must give Line 6 support the big thumbs up! I had started a "ticket" and did not get a reply in a couple days so called support up and they were great. The guy I was dealing with was Jason and although we were unable to get it working while on the phone he spent as much time as I wanted trying to get it sorted out. Not once did I feel like I was wasting his time or that he had better issues to deal with. Not sure if Line 6 ever looks at these forums but if they happen to, know Jason was most excellent! Before getting it up and running I did start to get responses to the online ticket I sent off from a couple different people. Once I replied it usually took a day to get another response, then in one day I got a number replies.
Guess the point of this long winded post is the VX is up a running and Line 6 Support was excellent! I don't normally write something like this unless it is totally deserved and this is one of those occasions. If you have an issue with you Line 6 product do call them and they wont disappoint.
Rock On!