If those lights are coming on all the time, you're experiencing distortion of the Analogue to Digital Converter ( ADC ). By reducing the input level, you should be able to obtain cleaner sound at the expense of having to crank the volume of the receiver up a bit higher. If the receiver is playing loud enough for you now without sounding distorted, it should have plenty of gain to compensate for the reduced drive after lowering the input signal. You may have to play with the settings a bit to find the best spot. I went through something similar several years ago, hence my familiarity with the situation. Sean
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