You got a bad phono stage in there. Shipping back for refund is a hassle, but will come to be seen as a lucky break once you find something better for the same or less. Good luck.
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Please tell me you fixed that Nak ca-7a? The first plain old ca-7 was very nice. But I kept hearing about the phono stage in the ca-7Aii, which I now have. And they were correct! The entire pre-amp is better. I tryed twice on eBay with bo the being sold as mint. For $800-950 for each. But both had issues. I ended up paying the actual going rate for one in mint cond. "$1650" . But well worth the price. If you ever get the Chance, take the top off the ca-7, or any Nak unit of that era and you Will see why they are so special! As far as buying a new pre for $900 that sounds simply "As good"? That is NEVER GOING TO HAPPEN! That Nak when you adjust? About $4500 in today's money! The Nak though old? Is several levels above that "Parasound" which was offered.... And remember, the ca-7 and pa-7 models were Nelson Pass designs. With his "Stasis" Architecture!
Awesome gear still!