Thanks for all the responses guys and making me feel welcome here! And thanks for the link cjp! I will head over there and bookmark too!
I figured that a lot of you guys were on here, but you didn't give me a chance to ask you! lol!
So... This is normal behavior huh? I am relieved to hear that my bass is not acting abnormal compared to everyone elses', but this still seems kind of lame compared to how I thought this pan knob was supposed to work.
What CJP added makes sense and yes, it does control the pickups in either passive or active mode, and yes, that behavior does strike me as the kind of coarse control you might see with a passive system.
Still... It sure would be better if the control was more gradual and gave you finer detailed control over the blend instead of that almost on/off switch type of effect. I can't imagine being able to really use it live very effectively, since it is so touchy right off the center line. I do hear balance changes going on, but they are all loaded into a very tiny portion of the knob's throw.
I too wonder if swapping in a different value pot would open it up and give you a finer and wider control behavior?