D200 Cutting Out

[MDB]

I got a friends D200 setup today and we are having a pretty big issue. At around -15 db on the volume control the D200 is cutting out (clipping?) and the display turns red. I tested the spl at the listening position (13 feet from the speakers) and peaks were in the low 80s. We are running firmware 8.0 and did the custom config for his cartridge (Sumiko pearwood celebration 2). We are using an optical cable from his squeezbox. The sound at the volumes that it will actually work is a bit anemic as well - very little bass compared to what we are used to in his room.

Speakers are Revel Studio 2's.

Has anyone seen this or heard of this before? How do we fix?

Help!