Paul,
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I agree with you it looks like its the LO leaking thru ?BUT...
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1) He bought this NEW ASSEMBLED.
2) one of the LPF toroids was completely disconnected because of a broken wire solder joint and the toroid was standing up (mostly) --> that would take a lot of vibration to do that I think
3) the tx output is not on the right frequency - its ~2 kHz off (high i think )
4) i suspect it was *never* even tested or calibrated
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So.. what Im thinking is Hans should jump in here and offer a new unit or at least have him send it in and get all "factory tested and calibrated" like it should have been. ?He has spent over a week pulling his hair out on what is going on with a NEW unit.
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My $0.02
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