No clue. My Wadia 301 works fine and reads everything, including scratched discs very well. Did you have it checked by a Wadia tech? It does not seem like a firmware problem.
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From my many conversations & communications w/ Steve @ GNSC, I understand that he is a certified Wadia service center & that he can make mods, service, replace, upgrade Wadias just like the Wadia factory can. The only thing, AFAIK, that he is not up & running to do is the SE upgrade to 861 units but that doesn't even feature w/ the 301 model.
So, why don't you send your 301 to GNSC & have it taken care of there?
Just a thought....
Well, Well! I have finally been able to get this player fixed. Service agents here in New Zealand tested and measured the transport. No problems. However, they cleaned the contacts where the ribbon cable connects the transport to the controller board. Fixed the problem immediately. Obviously some oxidation there. I could have fixed in 2 minutes myself. I almost traded the player in on a GNS modded 861. Would have set me back another 6K. Simply emphasises the importance of preventing oxidation and keeping all contacts clean.