Sounds like it just may have a short in the processor loop. But NAD will have to search it out. Or, just one more question before you box it up. Is it a 2 or 3 prong AC plug? If it is a 2 prong, then you may be to blame here. I have a high static issue and when I flipped LP's to side 2 I would get a lot of static. And actually MoFi pointed out that I need to ground myself before I touched the LP. I did that and the static discharges. So again if it is a 2 prong try to take a chassis screw and add a ground wire linked between the NAD and the center screw on your wall outlet plate or even a three pronged component. This will establish a ground. Also you may once that is place try to discharge the static in your body by touching another 3 pronged component in your system before touching the player's buttons. If that solves it then NAD will return the CDP back to you with a "no problem found".
I have had a number of problems with different pre-pros in my house due to static electricty and you may have this issue as well.