This is a copy and paste directly form the Magic 2 website:
For marketing reasons and to stop confusion we have decided to seperate the v5/6 (R type) and V7 magic chips. Please use only the "R" for the version 5 and 6, and the "V7" for the version7. Future magic2 V7 chips will not support v5/6 machines.
Here is the diagram for your V5 machine:
Although you said your chip says "MAGIC-2" and underneath that "M2-v3.0"...
The Chip on this diagram says "Magic-2" and underneath that "M2-v2.0"...
Don't know if this will help or not....