Problems with New Fast Track C400

[maestrochase]

The Fast Track C400 came out and I immediately thought it would be perfect for my set up. Unfortunately after downloading/installing the latest drivers from Avid/M Audio's website and plugging the device in, the preamp/input pots are scratchy and at the top 5% of the gain range, the self-noise is amplified exponentially. It's a gradual rise of hiss up until the final 5% then there is an audible bump and a 12db (at least) increase in noise.

I am thinking that I just received a faulty unit, but I wanted to make sure that nothing is wrong on my end. My computer/OS is Mac OSX 10.7.1 Lion on a 2011 Mac Mini Server 2.0ghz i7 with 4gig of ram and 2 internal 500gig hard drives. I installed the latest drivers from Avid's website before plugging the device in and I followed installing instructions dilligently. The audible noise is evident without any input devices plugged in, and I can both hear the noise through headphones when only using the control software or when recording with Adobe Audition or Pro Tools SE.

Any ideas? Should I return/replace for another C400 or go for another device? Thanks for any advice!