I have it working!!! I went into mpod (music player for my Vortexbox based computer) and turned down the volume...breakup is gone. Unfortunately now it's not bit perfect. The input sensitivity is set to low on this unit. Will the firmware fix this? Oh no...the break up is back. 
How old is the firmware on your device? Even relatively old ones should already be corrected for this:
May 30 2012
■Volume adjustment in USB mode no longer interrupts the audio
■Adjusting volume from computer in USB mode no longer causes glitches in audio
■Input overdrive warning added
■New translations: Swedish, Dutch, German
■Multi-point calibration was not always enabled after the primary calibration; should be better now
■Full factory reset now clears all settings (volume, number of profiles etc)
■Added manual channel balance adjustment
■Added input volume trim: adjust the relative volume of S/PDIF and analog inputs
■Default input sensitivity changed to "low" for better compatibility
■Added user-adjustable input sensitivity: better support for "hot" audio sources (DACs etc)
■Fixed rare audio glitch with certain digital audio sources
■Left/right arrow keys can now be used to switch active input
■More visible indication of bypass mode
■Miscellaneous small fixes
Apr 19 2012 R3
■Analog input sensitivity increased (from 1.6V to 3.25V with RCA; from 1.3V to 2.6V with XLR). Fixes analog incompatibility with certain "hot" audio sources (DACs etc) that output at excessively high voltages.
■Improved digital compatibility with certain devices (in rare occasions there was a possibility of audible glitches)
■Fixed GUI slowdown when entering the menu from USB mode
The 2013 model has even greater input sensitivities:
Analog specifications (2013 revision)■Dynamic Range: > 108dB
■Volume Control Steps: 0.5dB
■Input Sensitivity XLR: 3.9/7.9 Vrms, RCA: 2.5/5.0 Vrms
■Output Voltage Unbalanced RCA: 7.2 V(RMS) max
■Output Voltage Balanced XLR: 14.4 V(RMS) max