Well, my Baja is down now too...
When you press the S1 switch, there is a noticable volume drop and the differences in switch positions are very slight, not like before. I took it in for repair under warrantee. Luckilly the service center nearest to me is Motor City Guitar and they have a fantastic reputation. I hope the repair doesn't take long...I love that guitar. The problem does have me considering other p'up options should the thing crap out once the warrantee is over though.