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all lit and I've checked the contrast setting,
Yes - it works fine in daylight. A d-link tech suggested a "re-flash" of the firmware. I'm sure if that would help though, nor do I understand how to do it.
Yes - I did hold down the button to do the factory re-set. I can't imagine rolling it back to a previous version would help, as it was working fine with the most updated version and to my knowledge, there have been no new firmware downloads since. I think I just have a defective camera, which is disappointing, as I've already thrown away the original packaging.
I've only had it a month, so that's good to know.
JavaLawyer ~ Thank you for your help. I will update you on the outcome. No - no click when I switch between day/night.