Out of curiosity, were all the accessories exchanged as well, or just the machine? The reason I ask, is that there was one report of bad connections inside the DINSE connectors at the ends of the cables. You can pull back the rubber boots to check those, although I really doubt that fits all your symptoms.
I do find that the machine will go much lower on 120 VAC so I tend to use that for low amp welding, but it works fine on 240VAC, just not quite as low. I have never had the overload light even blink. Does this machine have that lamp flashing, or was that just the first machine?
I know I did measure the OCV, voltage under load, and current, when I first got the machine, but I can't remember what they were, so I will have to check again.
Long arc, short arc, heliarc and in-the-dark!