If you buy the stock Mode 2 Turnigy 9Ch failsafe will not work with your copter! I don't know about you but I know old man Murphy is alive and well and his law does apply here. If anything can go wrong it will. You need to be protected by loss of signal. So.. after testing failsafe I removed the trunigy reciever and reattached my Orange reciever to use with my Spektrum DX5e again. 2 flight modes stable and loiter, bat at least if I loose signal I know it won't fly away.
Here's what you need to get, I ordered it today:
http://www.hobbyking.com/hobbyking/store/uh_viewItem.asp?idProduct=14349
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Or you can simply put FrSky Tx module in the Turnigy radio, and use an FrSky Rx, and you get the features of the Turnigy and the safety of FrSky failsafe.
Edit: Doh, I didn't follow the link and thought you were suggesting everybody an Orange Rx to use with their Spektrum Tx.
You've got the solution that I am suggesting.
Jerry, this is a known bug (caused by a weird failsafe in the 9x) but it has been fixed in the latest version of the PPMencoder software. Once flashed, the failsafe works fine on the 9X, I can verify that through personal experience.
Look here: https://code.google.com/p/ardupilot-mega/wiki/APM2Encoder