No output on New LS26

I just hooked it up for the first time and have tried both outputs and CD and Proc Pass Thru and get no response from volume. Re hooked main amp back up to pre-pro and it works fine. Hooked up Grado headphone amp up to outputs and nothing. Hooked Grado up to Monitor and get bleed thru so a signal is present. Hooked grado up to record out and get full sound. The culprit appears to be the volume switch. Spent an hour on the phone with the dealer, we racked our brains. Life sometimes has a simple solution that you just don't see it. OH also tried reset procedure 4 times. SO any one have an idea before I box it back up. Hoping is just a tad of magic dust, mixed with sap of oak tree and a frog eye. Let me know what you think.