From your description it sounds like you’re using the 654 Vintage Delay algorithm from the H8000. This one loads with the modulation rate at the highest setting, which is why you’re getting the frequency modulation type sound. Turning the rate down to something between 1-10 Hz will give a better modulated delay sound. This will be fixed in a future update. If you use the 9102 Vintage Delay algorithm from the TimeFactor, the algorithm sounds better at its default values.