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take it back if you just bought it from a dealer - it should work. in general, most skywatcher problems can be traced back to the cable that connects the mount and the handset and your symptoms suggest that there may be a connection issue like that.
It won't be as good as a $20,000 mount, but I have an ancient Celestron of the same general type and it does the job surprisingly well - would expect that the Skywatcher will be similarly effective when you get it going.
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