This is normal in some lower end UPS's, the voltage can swing quite a bit, a drop of 40 seems like quite a bit but it's out of the question. It will also adapt to what is plugged in yes. Ultimately to test you would want to try it with something like an actual PC plugged in and make sure it stays running. I'd say otherwise it sounds normal to me.
This model generates a modified AC waveform using a switch which generates a square wave. This techniques probably explains the lower than expected RMS voltage measurement.
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Thanks for your response. I was somewhat reluctant to plug my computer into the UPS and have some catastrophic problem occur because of a severe under voltage situation.
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