Zak,
That definately sound like a stabilizer problem. Did you buy the stabilizer new from a local shop? If so I think it would be covered as defective. I'd ask the shop to get it out for you if that is the case.

As for suggestions on a new stabilizer. I've had very good luck with the sims modular stabilizer on my pse. My bow wasn't overly loud to begin with but there is a night and day diffrence with and without it.