I am glad to hear that it works now and also happy that you didn’t have a problem exchanging the device. Thanks for keeping us upated with this issue – we will have to keep a close look at our power supplies units.
Concerning your verbatim drive: the fact that the LR-16 sets it to 16bit instead of 24 already indicates that this USB disk ‘see’s itself’ as a flash drive (like a normal USB stick) rather then a USB drive. The dropouts occur because the verbatim obviously can’t sustain it’s peak performance over a longer period of time…
Cymatic Audio Support