Yeah, I did read about a lot of problems with that system here. :(
So you don't like the sound of the nanomag pickup? I think it's a little bit of an eyesore on that pretty guitar, for sure. I may replace it with a Baggs element, afterall. I have a tech looking at it right now and if it's not an easy fix maybe I'll go for a Element. Will suck to have a useless extra output jack and to lose the stereo capability.