The balanced inputs into my Steridian didn't work well at all. I have been using the RCA's instead and haven't had any problems.
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I have learned quite a bit about the Whisper Processor that I have posted in Fplanner2000's old thread from when he had his balanced input issue. Feel free to email me and Ill help in any way I can if I can.
First off, anything that has more than one input must have some sort of switch to know which input is to be outputted [did I say that right?]. For example, just because your amplifier has both single-ended AND balanced inputs doesn't mean you can hook two different sources up to these two inputs and expect to hear what you want...even when one source is turned off...which is what I think you were surprised by.
With the Whisper Processor, it is the same thing. It is not a switch, but a part of the Whisper System. It is also tuned specifically to the Whispers in spite of Legacy providing similar products separately. Back to the WP - only one set of inputs should be used. Internally, it is a single ended unit, so it really doesn't matter which input you choose. Actually your problem may have been because it is internally single ended, and your system didnt like the balanced to single-ended conversion done inside while both inputs where connected simultaneously.
I need a glass of wine!
I am sorry if I am not being too clear it is clear in my head I think.
Now the outputs are a different story. You can use all the outputs at the same time [Fixed and Variable single-ended and the Variable balanced].
BTW I am no electronics expert, just an obsessive schlep who has looked into the WP a whole lot. Actually, our systems have a lot in common. My room is similar sized [33x18-23x9]; I also use the HTS 7.1, and have two LF Xtremes supporting my Whispers.
Best of Luck,