I'd agree that it's worth looking into fixing the MS-1, especially if it just turns out to be a bad connection.
I don't recommend the K701/2 personally. It's a good headphone and excels in some areas, but its sound signature doesn't suit me. I enjoy the MS-1 more, even though the K701/2 is technically superior.
I've listened to the SR325is and liked them quite a bit. Going by hearsay I expected them to sound harsh, but I thought the treble was smooth and extended, even if it was a bit prominent. They're heavy though, and may not be good for long listening.
I have an Ultrasone HFI-680 that I like a lot. I also have the Fischer FA-003 that I like a little bit more at the moment. My wife's favorite headphone has been the MS-1. She prefers them to everything else I've acquired, though that's strictly her opinion. She does put the Fischer in equal standing, so I'd consider them fun to listen to while still sounding neutral.