FAIL 001 is a Synthesizer out of lock condition.
Spectra radios are great radios but they have a really bad problem with leaking capacitors on the circuit boards. Sometimes if the radio has leaky caps you will see this error. I own 3 spectras and 2 of them had this problem.
See here:
http://www.batlabs.com/spectra.html
Also, took this from another website:
"As these radios get older, the electrolytic capacitors can become a problem. If the electrolytic capacitors on the control head boards, radio drawer command board or RF board leak, it will disrupt the operation of the radio. Any leakage will also eat through the printed circuit board traces if left there long enough. The more common problems are radios that will not power up, get stuck in SELF TEST or give a FAIL 001 error message. Electrolytic capacitors are not the only cause of these problems, but they are becoming a fairly common cause. Keep this in mind when trouble shooting these radios."