I noticed in my new HMC40 that a rather annoying hiss existed in my headphones when using the Panny XLR adaptor. Thinking that it could be just in the jack, the hiss was later revealed in my footage. I wrote to Panasonic asking them if this was a normal defect in the model, or if my specific camera was bugged. They replied by saying, "they have never heard of this issue prior," and that I should take it in for service. So, I did. The service co. tested my camera against other HMC40s and discovered that it is common in all of them. While I tested and did my research before buying the camera, this issue never came up. My mistake was not testing the HMC40/XLR adaptor together, I assumed it would produce decent in-camera sound, but never anticipated such a problem. I realize the camera is cheap in comparison to more expensive counterparts, I figured in the smaller sensors and limited functionality for why it was priced so low -- but I guess audio is an issue too. The service co. said they didn't understand why Panasonic didn't make the issue known -- although we can all understand why. But they advertised the camera as having "professional audio" capabilities when the XLR adaptor is utilized. No camera can compare to the sound quality of independent audio devices, but a hiss!? Really!? Anyway, if any of you feel the same way, waste some time and take your camera in for service to have them tell you this, while Panasonic flips the bill under your warranty rights. Perhaps after so many unnecessary service visits by HMC40 owners, they'll change their practice.