Update: today I took both regulators and the tank to the local Airgas shop. They were extremely nice and helpful. Long story short, the guy took both apart and confirmed they are both bad regulators. There is a needle inside the main housing that the guy said would normally be made much more sturdy. These regulators have the needle epoxied in and therefore was not totally level resulting in an internal leak. He fiddled with it some and got it to work... Kinda sorta. I ended up buying a higher quality regulator from the shop just to ensure reliability. I still plan to contact the manufacturer to get satisfaction, but I guess kegerator regulators and generally crap. Once the new regulator was installed, everything worked perfectly. Thanks to all who provided advice!