Here is the Ignite site for more information:
http://www.software.hp.com/products/IUX/index.htmlI'm guessing you are still on a pretty old version of Ignite since this command has been superseded by make_tape_recovery and make_net_recovery.
Right off the bat I'd say make sure you are at the latest (or close) to the latest version.
That said you should be able to check the following log for information:
/var/opt/ignite/logs/makerec.log1
This should show where the vgdisplay failures are happening.
Finally - unfortunately there is no good way to test an Ignite archive that I am aware.