Pan of Ind. Sound-Out is acting erratically and I cannot use it

Hi...

I hit the OUT tab on the Maschine controller to gain access to Ouput/Level/Pan parameters of the individual sounds of a kit.

Level works fine. However, when I start turning the Pan knob the number (%) isn't going anywhere and neither is the sound. Then all of a sudden it pans hard right or left. Then just sits there regardless of how much I turn the knob. On the OS Interface the pan indicator is moving back and forth erratically ( in this case between 95 & 91 %)

I have installed each update and done a restart. I use OS X Snow Leopard Latest Greatest. I use Maschine in stand alone mode and the problem persists regardless of 32/64 bit mode !

Any help is greatly appreciated

Thanks
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I tried removing the Maschine Controller and after that the PAN fader quit behaving erratically...

Would this be a sure indication of me having gotten my hands on a faulty controller ?