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As I said, or at least implied, when I gave AFC69 the solution (in another forum!) this seems to be a common problem with the SmartScart product range.
Could be that the design is such as to ensure that there is always enough amplification to provide audio to the multiple AV outlets and to allow for signal loss in long SCART cables - problem is that there is actually too much gain for most normal applications! Could be a real problem with the audio level of an sound-input source is already high and can't be adjusted down - although I have'nt encountered that problem as yet myself.