Overhang, it is well worth the wait. All the problems of the MKII are gone. I waited since early January.
Dave_b, the comments from Microstrip in the above post seem to be spot on. More detail, resolution, midrange and bass punch were realized. I assume this is because of the more stable and improved transport system. I dont know what the exact internal changes were but I was told the unit was basically re-designed internally and little parts from the MKII version are used in the new version 3. Also, it seems like this player has been discontinued and is now replaced by the EVO 505. It's instruction manual is now in the archived section on the Krell site as well.