With the ever decreasing trend in accessibility to hardware tools, the need for software tools is becoming greater than ever for IC fault diagnosis. In this paper, we present a process of studying the limitations and capabilities of fault diagnosis using automated Diagnosis tools, such as FastScan™, as applied to a programmable, parallel processing DSP, The Multimedia Video Processor (TMS320C80). Starting with a brief description of the MVP, we describe how FastScan™ is integrated for supporting fault diagnosis. For establishing the effectiveness of FactScan™ as a diagnostic tool, both the simulation and manufacturing modes of evaluation were done. In simulation mode, both the fault model and the heuristics used by the fault diagnosis software are tested by inserting known defects using a focused ion beam (FIB), machine. This process is then repeated with unknown defects in unknown locations. Experiments on several chips demonstrate the value of the tool and its limitations in relation to detection of classic stuck-at faults and some realistic faults, such as bridging defects.