I checked all the volume settings in control panel and adjusted the record volume to its highest setting, now what I get is loud static. I give up and am returning the Transport. I wanted something compatible with the Itunes player. I guess I did not look close enough at the product description before I bought it. The slim server interface is like two or three steps back for me: it is slow and clunky. It seems to me the Transport is optimized for the remote, which I would rarely use. Thanks for all your help everyone. I'm going back to the drawing board.
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