What temp did you pitch at? Did you make a starter?
I used Wyeast 2000 and direct pitched at 26, it still took just over 48 hours before fermentation started, thats when I took it down to 10 and its been cranking along nicely...
If you repitch dried yeast you wont be able to reuse the Wyeast packet...
For all my lagers I use wyeast's recommendation of pitching warm (20-21C) as there are not enough cells in a smack pack to pitch at lower temps. Alternatively they recommend increasing this pitching rate (starter).
The pack doesn't need to inflate, as that is just the "proving mechanism" i.e. nutrient into the yeast. Did you leave it a couple of days @ the higher temp or drop to 10 straight away?
I am going to borrow the recipe and hit it was W34/70.