Ground Loop


What is a ground loop? I understand that they can be caused by loose connections between components. What else can cause them? What are the effects? I have been told that humming from my power amplifier can be a symptom of a ground loop. True/False? Can ground loops cause damage to equpment?
mordenmail
Update: I've decided to revamp my system. Replacing Denon AVR 2803 with a B&K AVR 507. May take Adcom GFA 7000 completely out of the equation. Hoping ground loop problem will resolve itself following changes.

Musicnoise: Thank you for your extensive explanation. Thanks again to all. I learned a lot from the process. Will be back on this thread if unable to resolve problem if it persists.
Here is a excellant paper on hum and buzz in a unbalanced interconnect system; google jensen an-004;written by Bill Whitlock.
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