Yup, I had it too when I tried to feed my SCART output through the empeg!

It's caused by the ground referencing method used by the empeg for output to amps, rather than the input signal reference. The short stub lines supplied with the sled should have helped sort this out; they perform the grounding function that you carried out. Have you used these leads, or not?

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One of the few remaining Mk1 owners... #00015