Could it be that the current draw exceeds what the power line can deliver? You will have a spike at start up and I'm thinking that you might have something else on the same breaker that is causing this instability...
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Here's my guess:
When the amp turns on, your AC line voltage sags for a very short period due to the inrush current which will cause a glitch with the Krell processor.
Once the processor experiences a glitch, it can do strange things like being locked up or resetting itself which the Krell seems to be doing by shutting down.
You don't have this problem when the amp is turned on first since the line voltage has recovered by the time you turn the Krell on. You can verify if this is the case by plugging a lamp in the same outlet as the amp and see if the lamp dims briefly when you turn the amp on.
Ah...the "brown out" syndrome when a high current amp fires up (after everything else is on for a minute) there's a little spike, although I've found with better amps it's not audible in the speakers generally. I doubt it's a grounding issue and I assume the Krell senses the little electron rush and decides to duck. This is another reason I'm thinking about dedicated lines for this stuff, along with keeping the system off the lighting circuits. You could get a power re-generating conditioner although they're often expensive.
You guys are correct. I called Krell to ask about the issue, and his first question was "Are you using a power conditioner?" And yes, I am using a PS Audio Premier active conditioner, and it can't provide enough current when the amp turns on. The Krell senses the drop in current and shuts itself off.
Plugging the Parasound amp directly into the wall fixed the issue.