Chris,
Ampeg has confirmed that the PF-500 has a builtin protection circuit that causes this cutout to prevent damage to the head. The protection circuit kicks in at high levels of gain. Ampeg has also indicated that, if the compression, gain, and volume are not set accordingly, it can cause this protection circuit to kick in at an undesired time. When turning on your PF-500:
1) Turn off compression, gain, and volume
2) Start playing your bass and turn up gain until peak light starts flashing then back off of gain
3) Turn up volume
4) Set EQ
5) Set compression to desired level
6) Set volume to desired level
7) Double check gain to ensure that peak light is not flashing. If so, back off gain
It is my understanding that, if these steps are followed the protection circuit should never kick in at an undesired time. Theoretically, you should be able to max volume with this method without the protection activating, but I did not do this in testing for fear of damaging my drivers.
More information on the specifics of this protection mechanism would be great if anyone knows.
Jimmy?