Mike and ThreeUnder,
This might be a little bit more advanced than most people are wanting to go, but I would suspect your thoughts about the peaking of the needle are not correct. Here's why. When we are dealing with peak voltage, most meters don't read it. Most meters will read RMS (root mean square) Without getting overly complicated, your wall outlet will read 110 vac when you plug a meter in it. But that's not the peak voltage. 110 volts is .707 of the peak. So that is why I was recommending multiplying the reading obtained by the meter by the inverse of .707 to obtain peak. (this is assuming that you have one of the True RMS multimeters)
I apologize for getting terribly technical, but I'm an electronics technician and not an outboard technician. I avoid buying expensive, single use, test equipment if I can help it. I'm not advocating not buying a DVA, but I'd just be curious if you can obtain peak with a typical meter. The only way to know that would be to have a DVA and test using the DVA, then remove the DVA and test using just the meter and doing the calculation that I mentioned above.
Either way, it's an interesting discussion and I hope you let me know what the results of your troubleshooting shows.
Mark