Tried flashing, factory restore and updating both board and POD. No luck. Went to the store to get it fixed under warranty, no prob, but ended up trading it in for an old school analog pedal instead. It scared me a bit because it's the second line6 unit that breaks down on me without any abuse, I fear it could happen on a gig. I'll just use the POD on it's own for home practicing and make a reliable pedal board instead.
Thx for help.