Hi Jason,

Yes, the levels are correct.   It is definately defective.  It's been less than 60 days so I'm going to Circuit City tonight to try and get them to return it. The one I bought it at is one of the ones being closed, so maybe they won't care and will take it back.  I initially bought the HK AVR-254 but there were some bugs and it was going to be more than 30 days from my purchase before a rumored firmware update was to be released. Didn't want to chance it since there was no guarentee which issues would be corrected.   I'm totally bummed.  The firmware patch is out, and it seems to be fixing a lot of the issues.  Ugh.  despair.  :)