finity, you got one of the 10% pieces of equipment that ship defective. GET and RMA A.S.A.P. from the seller (Newegg?) and send it back.
CALL them on the phone and explain what happened and they might pay for return shipping (they may or may not be able to set up the RMA on the phone, but I have been on the phone with them AND set up an RMA online at the same time and then they have brought it up on their computer and taken care of shipping.
Couple things: Do NOT plug a UPS into a surge protector or surge protected power strip; Nor plug a surge protector into the UPS. The ups you chose is a really good one, but it already contains surge protection. Plug directly into the wall.
2. A UPS is used for two primary reasons: 1st to provide clean power to the pc by "filter" the 110 from the wall and actully maintaining that voltage to the computer. Your house power fluctuates constantly. At my house it runs from 117 - 121 volts
depending on season, time of day, what other appliances are running etc. (it just went from 120 to 117 when the AC turned on). These little fluctations can be dealt with by an Active PFC powersupply, but that is just another expensive piece of equipment to fail over time. If the fluctuations get into the PC components they can eventually be damaged.
BIG reason for the UPS is in the event of a power failure. Most will keep your pc running for 8-10 minutes, some longer. That's long enough to run in and shut it down properly or for installed software (provide by almost all UPS manufactures/vendors) to shut the pc down, thus saving any work or data in progress and avoiding damage due to a hard-shutdown.
Last two points: Some Pwer Supplies require a UPS with true SINE wave output. You can check with your psu manufacture if you think it might be the problem
And, finally after a very long reply, the batteries DO wear out. I wouldn't seem like it, but they are in constant use due to wall-voltage fluctuations. Both of my UPS units died in January, and they caused problems with computer booting etc. when I had my pc's hooked up to them; they said they were fully charged, but it was like a car battery - didn't have enough amps to run properly. I replaced the batteries and they are fine. Took 4-6 years for them to go bad, acceptable in my book.