Sound fades in and out HELP

[drumbum1977]

Hi everyone,
I am still a newb so this may be an easy one for some.
I just bought a Dinky DK2, and I notice on the top string that when I play a note, the sound will quickly fade out (over my amp). When I hit the string multiple times, it can come in and out and it sounds like I am missing notes.
Now this happens at any setting on the amp, no delays or anything like that. It also happens all over the fretboard.
So can this be a bad string? A bad pickup? Altough it does happens when I swith between all the pickup settings.
Thanks!

[DonP]

It's not the amp, right? Other guitars are fine?

[drumbum1977]

I only have the one guitar....come to think of it, the amp is new too (2 weeks).