Hey thook, so when you said you hooked it up at the dive shop and it made a horrible sound, was this after the incident? Either way, your dive shop should have been able to disassemble it on the spot to see what was happening. It sounds like you may have a bad shop/technician. Giffenk provided a list of the the most likely culprits, and if it was making a sound upon hooking it up, I might guess a hole in the diaphragm.
Regardless, again here's the value of you sharing your story. My current dive buddy is a new diver and we frequently discuss emergency scenarios and how to handle them. Over lunch I was telling her about what happened to you guys (this is not a scenario we had discussed before). She said just hearing the story almost made her want to panic. We discussed what she should do first in that situation and then further discussed our buddy protocols and U/W teamwork. Not to say that our planning would guarantee a successful outcome in that situation, but always, the more you know, the better off you are.