The wiring drawing doesn't make a whole lot of sense, but perhaps I'm making some incorrect assumptions for things that aren't labeled or connections that aren't shown on the unlabeled cables. Or maybe you've made an error in sketching it out.
Is the Circuit2 cable at the top of location1 the same cable as the Circuit2 cable at location2? If so, I don't see how that wiring can be correct. The white wire which is connected to a traveler terminal at location1 appears to go to a neutral at location2. But maybe this isn't really the same cable.
What is wired to the Circuit1 cable at location1? Another DV603P? A plain 3-way switch?
Where do the unlabeled cables at location2 go? To the fixtures?
Right now, I'm thinking that 3-wire cable on the right top end of location2 is the Circuit1 cable at location1, and the 2-wire cable that is the 3rd from the top left at location2 goes to the circuit1 fixture. This would make sense for a proper 3-way circuit for circuit1.
Is the connection that ties the white wires together at location2 the neutral? Seems like it must be.
Thus, it would seem that the 2-wire cable that is the 2nd from the top left at location2 must be the cable to the lighting fixture for circuit2. But since it is tied directly to both hot and neutral along with the always-hot cable, that makes no sense.
To figure this out further, I would explore the wiring at the light fixtures. Turn off all the circuit breakers for these circuits, disconnect the wiring, and then use an ohm meter to ring out each cable and figure out which cable goes where. If there is only a 2-wire cable coming into each fixture, that will tell you something. But if there are 3-wire cables or multiple cables, that might help explain the puzzling wiring.
Also, double check the actual wiring against your drawing to make sure the drawing is correct.
Edit:
Here's one way that it might be wired, assuming the two circuit2 cables are not actually the same cable, but are instead cables to the light fixture. (Apologies for my poor scribbled drawing of the wires).
http://cocoontech.com/forums/index.php?app=gallery&module=images§ion=img_ctrl&img=957&file=max