Proceed AVP2 locked up solution ?

I had the same exact problem - flashing red light and all. I am technically challenged, so I sent it to Madrigal. They fixed it within a week of receiving it and shipped it back promptly. If it is not an inconvenience, I would call Madrigal and see if it is covered under warranty. You probably know this - if you are not the original owner, the warranty is transferable. I love my AVP-2. I like it much better than my Lexicon and Cary processors, especially because of the way it sounds in 2 channel mode.

Record loop from my Masterlink I'm sure was the cause.
Was trying to lay down a bass guitar track when I selected
the wrong input. I'm the second owner of the preamp.
I did purchase it from a guy before Madrigal changed
it's policly. Are you saying they will honor the
five year warranty? I thought they had stopped that
for Levinson equipment.

I am also a second owner. Madrigal honored the warranty for me. The problem just happened, last October. My situation might be different than yours in that I purchased mine, used, from an authorized Levinson dealer, and the dealer arranged the repair for me. It is definitely worth a shot to call Madrigal (or Harman Specialty Group), though.