The breakup reaction He(d, pa)n at Ed =7.0 MeV has been investigated in a kinematically complete experiment with vector and tensor polarized deuterons in a kinematical situation with zero relative energy of the two outgoing nucleons, a preferred situation to show effects from the singlet deuteron d* and therefore isospin breaking. A complete set of analyzing powers, A~, A», A""andA"in addition to the differential breakup cross section, d'o. /d03dQ4dS has been measured. The data are compared to new Faddeev calculations including an approximate (cutoff) Coulomb potential allowing for the d* production and also D-wave a-N interactions. Good agreement is found for the polarization observables and the shape of the cross section which, however, disagrees in absolute magnitude. Both the inclusion of the d* and of D waves seem necessary for a good description of all data and for the interpretation of a small excursion in some observables in the n-p final-state interaction region as a manifestation of the isospin-forbidden d PACS number(s): 25.10.+s, 24.70.+ s, 25.45.z, 24.80.x