MSB Link III - Please help before I lose my mind

this is the short form:

Bought a link dac III with half nelson upgrade. The Canadian Distributor did the upgrade (claims to be 'authorized'). The parts that were to be in the upgrade were not the correct ones. I bitched and complained and so they took it back and made a new one with the correct parts.

From the initial date of purchase, it took about 6 weeks to get the product in hand.

I've now had the product home for about a week. Today I discovered more problems...

Issue 1:

While listening critically today, I noticed that vocals were a tad strident..they did not seem to remain in position. The MSB user manual indicates that sometimes the link dac can sound better by flipping the toggle switch on the back into the 'up' position, thereby inversing the phase. I tried it. Lo and behold, the singer's voice locked into place. I was going to leave it in this position UNTIL i noticed that when skipping tracks (or simply letting tracks play into the next - ie. when track one comes to an end and track two begins), there is a 'clicking' noise inside the dac. To reiterate, when i switch tracks (or even when i pause a track), the dac makes a 'click click' and then does so again when the track is resumed or the new track begins.

IS THIS NORMAL? it sounds as though an internal switch is being flipped each time a signal comes into the dac. This would not bug me if I didn't feel the 'up' toggle (inverted phase setting) didn't sound better. This problem does NOT occur in the 'normal' setting, which i feel does not sound as focused.

Issue 2:

I am thinking of ditching my HT amp and getting a higher quality 2 channel integrated. In this regard, i would be watching dvd's in two channel, so i figured i'd test out the optical input of the Link dac. I currently have my cd player connected through coax, and so the dvd will be through the optical. The link dac is supposed to switch between the two automatically, depending on which source is being utilized. With the cd player turned off, i turned on the dvd player and GUESS WHAT! it was not detected! The indicator lights glow brightly when the cd player is detected, but they are only illuminated very very faintly when the dvd player is turned on, not to mention the fact that no audio whatsoever is heard.

what should I have the audio setting on my dvd player set to? Should it be bitstream or pcm? Pcm down conversion or not?

Am i doing something wrong here???

I'm ready to simply bring the link dac back and try to get my money back or something (which i know the retailer won't do!)...either that or toss it out the window!!

HELLLPP!!

Steve