I too have been experiencing audio dropouts with my optical inputs. I just purchased my 1050 and had the whole family over on the 4th to show off my new system. Needless to say I was embarrassed with the dropouts. I was able to hook up a coax to my DVD player and the dropouts appeared to stop. This is an unacceptable solution as I need the coax to connect to my digital cable. I thought maybe it was the optical cables but reading your post makes me question that. Any other Ideas?

I guess I'll contact Outlaw.

-Bri