First, a big thanks to samplesj for contributing his explanation of the voltage gain issue. I knew I had to be way off base because it just didn't make any sense. Nonetheless, in practical experience with the ELP, I can tell you that the standard 2 volt output of most CD players is significantly less than the output of the ELP through a 42 db phono gain stage, not the other way around as your calculations would suggest. I know this to be true because to play back at the same level as a CD, I must reduce the line stage volume control to approximately 1/2 of what it would be to play a CD at the same volume level. Perhaps the average record has velocities greater than 5 cm/s.
Vanmeter, it sounds to me like you are having some kind of a problem with your particular unit. What you are talking about is not an issue with my player, and I know several other people with these, and they have never complained of it happening when they play highly modulated or "hot" LPs. In fact, if anything, I've found the tracking to be considerably superior to the vast majority of phono cartridges. I certainly don't get distortion on high hats or "s" sounds as you describe, though with the H-Cat in the system, it just distorts in general. So, in my case, I truly believe it to be an overload problem, but in your case something may be out of alignment resulting in mistracking and distortion. I assume you have contact information to reach the manufacturer--it's probably time for a tune-up.
Dean