Addendum:
Even after correcting for some hardware problems per the last post, erratic behavior continued wherein the V2 wouldn't reliably respond to the remote and would sometimes change mode on its own.

And then finally the "aha" moment arrived. The culprit? A plasma TV used as a monitor for a music server system. TV on - erratic behavior

TV off - no problem, behaves normally
Solution (so far) - cover the case with a copper sheet, thus shielding the V2 from emi and/or rfi emanating from the plasma TV. Who would have thought? Good to know.
