Solution found.
B&O America have a cable 0898126. I have this cable now and can testify that it works. All problems listed above, including the single channel, humming, listen in, etc are just symptoms of the wrong cable being used.
You simply press PC on the Beo4 and the local sound source comes through the speakers, whether it's line in, variable volume, a TV with line out, an IPod (use it on full volume) etc.. work in a linked setup or stand alone.
If you have specific questions please go ahead and ask....
beoaus.
Location: Australia