Aha! You do have an extraordinary unit! That pot is probably bad, or the microcontroller may be poorly seated.
1. Re-seat the microcontroller. Carefully pop it out and seat it back into the socket.
2. Turn on the unit. Gently but firmly press down on the shaft of that fussy pot, and sweep it through its full range. You should see the numbers 1-8 appear smoothly. Your video reveals that the pot does not seem to behave as it should. Another way to verify is this: set Function to 6, X-Y mode. Now the last pot is used to set the MIDI value, 1-127, transmitted when the right sensor senses your hand at the far limit of its range. Turn the knob smoothly without pressing. Do you get a jumble of jerky 1274numbers? Do you get something other than at full left and 127 at full right? Try again while pressing down. The numbers should scroll smoothly across the range.
If these tests are positive, then the pot is bad and must be replaced and we will send you a new one.
Please run the test and let us know!