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So I decided to learn the violin at age 30

I purchased the Cecilio electric violin, same as the Fiddlerman reviewed and had video of. It came all nicely packed looking new BUT I put in the battery, plug in my headphones and here are the issues I'm having:

- no sound coming out of the headphones - no violin-like sound
- it sounds like I'm moving a soft piece of cloth across the strings but no sound
- there is sound when I pluck the strings, but not when I move the bow over them
- I did tighten the bow 
- the strings are hard to set tension on. For example, I turn the knob but under pressure, it just turns back to its original position and the string is 'loose'. Now I play the guitar so I know how tuning should make the string stay in tension. It doesn't happen here. 

Please help. Did I buy a used/defective item? Is there something I was supposed to do to make this work that I missed? Is is the bridge? I hear the sensor is right there under it but the bridge seems fine and upright, mind you when I do take it off the piece below it is oddly sticking out in one direction a little. 

Thanks. It felt really discouraging getting my first touch of a violin and there...it's broken (maybe).