I meant the loop being on or off with the effects button on the footswitch.
Anyway I went over to the Marshall forum as part of my searches for people who have had similar problems with an ISP Decimator G-String and I found this interesting bit of information:
According to ISP Technologies technical support --->
The G-string was never intended to run on batteries. The battery in it is there for test purposes only. It won't last a set, let alone a gig. Use an AC adapter
This, together with your suggestion that the pedal is not true bypass, made me think that the fact that it keeps getting worse (even though the pedal seems to be working in terms of noise reduction) means that the issue might be a battery going flat.
Seems like this pedal REALLY chews through batteries. So I cleaned all the contacts - including on the footswitch jacks - and installed a brand-new 9V battery. It's working okay now, but I'm guessing not for long. I will have to get a 9V adapter but I really want to get a proper pedalboard rather than getting a heap of individual 9V adapters.
This battery issue combined with the fact that it is not true bypass would explain (1) why the problem kept getting worse & (2) why it happened whenever the pedal was in the chain, even if it was turned off.
The drip drip noise is another issue. It didn't do it tonight but it has been doing it most days long before I got the loop set up. It seems to be better or worse at different times of day. It might be a tube going microphonic. I should call my dealer as the tubes are still under warranty.
Cheers for all your help. I was pretty lost as to what the cause was. I don't have a 9V adapter so I didn't test that out.
One good thing about it is that I just kept playing pentatonic scales listening to the amp while making small turns to the pickup height on my Nailbomb and finally found that sweet spot I'd been looking for (I also raised the pole pieces quite a lot). I got the Cold Sweat set up pretty well too, with the pole pieces up one half turn. Generally it sounds pretty good now, although obviously the amp could do with some EQ changes for different styles I just hammered through various riffs with the existing settings in clean, crunch, and lead modes. A bit of old Priest, some Sabbath, some AC/DC, some Rose Tattoo, some Iron Maiden, and some Accept. 8)