I've had my 1050 for over 2 years and the only dropouts I've ever experienced were due to incorrectly flagged DDEX discs like Pearl Harbor and Jurassic Park 3 when the 1050 was configured for only 5 speakers. And even for them, there's a work around - configure the 1050 for 6 speakers, even if you don't have a rear center one and the dropouts will cease. And it's been tested, there's no risk to running the 1050 configured this way (set for 6 channels but with only 5 speakers attached).
If this isn't the problem you're having, then the only other idea I have is that perhaps you've got a cracked or broken TOSLink cable?
------------------
pat----email: pat@sklenar.info ---===---
home page: Grumpy's Lair