Hudson,
Which line inputs are you talking about? THe line inputs on the normal input module is actually transformer coupled. There are some interstage coupling capicitors in the circuit, but I haven't seen these fail more than once or twice in the last 15 years.
Now, the inputs on the master modules are a different story, these, like the insert return are electronically balanced, and do incorporate coupling capacitors. One of the mistakes that people make is to connect the insert return through the insert send connector. The problem with this is that the signal is normaled through to the return, but is looking at the output of the insert send, which causes frequency anamolies and gradual onset distortion.
Now, the other question is how are you feeding the line inputs? Balanced or unbalanced? If you are feeding an unbalanced source into the transformer coupled inputs and are not shorting pin 3 to ground, then this would cause the failure mode you describe. Grungy input and no bottom.
One thing to remember about the 961/962 consoles is that all the outputs, whether electronically balanced or transformer coupled, behave in the same way. You need to ground the unused pin when feeding an unbalanced destination. Studer uses a Transformer-like cross-coupled electronically balanced outputs on all the outputs that are not actually transformer coupled. This makes it easy to hook up because all the outputs behave the same.
All the best,
Mark