Benchmark DAC2 seeting into Ayre k5exMP preamp

I just purchased a Benchmark DAC2 and hooked into my Ayre K-5xeMP preamp and set the HT Volume Bypass mode as per instructed in Benchmark manual. I started getting bad popping noises until I turned off and turned the volume control to 12 O'Clock ( halfway ). Benchmark manuals also states when using Balanced Analog outs the input sensitivityof an amp may require changing the internal output pads to -10db. 
Anyone have any insight on this ? I bought the Benchmark very lightly used at less than a year old, maybe something wrong with it ?

Once I set the volume control to halhway or the 12 O'Clock position all seemed fine. I do not want to blow a resistor in my Ayre preamp howver. Thank you for your feedback.