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BTW I looked at the equalizer and it says +0 at the top. Is this right?

Gah. Yes. That means you didn't cut nor boost any equalizer bands. 0 is the center position of the equalizer, not the top. You can go up past 0 or down below 0. Same with volume. 0 is full non-attenuated volume.

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Is there a way to just go back to default settings?

That IS the default settings.

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How would I check my "test files" or check to see if my system is muted?

The MP3 files you're playing. Are they actually good MP3 files? Can you play them on the PC?

If the system is muted it would indicate such on the screen with an icon.
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Tony Fabris