This thing has gain for DAYS, and yes, turning up the gain is going to distort quite a bit, at modest levels, I usually dont get above 2 on the font panel markings. The threshold im still not sure IS a threshold, it almost seems to act like half of an 1176 input knob (increasing this without touching the output results in a hotter level out). As for the meters, mine sit at around the 4 (4.2) mark on the meters when idle (which was my only "problem" that remains with the cirucuit). RF is a byotch with this unit. Don't have ANYTHING that might even think of generating any kind of radio freq. cause this thing will pick it up and use it (iPhones are the worst, i literally have to put my phone on the other side of the room or this thing will start talking) From what I've read though, this behavior was observed on an original PYE comp as well, so im not that worried about it, when i use it i just airplane mode or turn the phone off, the time im disconnected from the world is well worth the tonal golden squish that this thing delivers.