WARNING: IF YOU WISH TO VERIFY MY OBSERVATIONS, BE VERY CAREFUL. LISTEN USING A DISPOSABLE PAIR OF HEADPHONES (BETTER YET, DISCONNECT YOUR SPEAKERS). THIS REQUIRES SWITCHING BETWEEN SOURCES AT NEAR MAX VOLUME SETTINGS.
OK, what is all of this about? Well, I have discovered that when you switch to the 5.1 inputs, there is a disturbing amount of leakage from the most recently selected source. I have spoken to Scott and he confirmed that this is a known problem.
This is how I discovered this. I was listening to a radio station. I then put in a classical CD. My CD player is connected directly to L/R of the 5.1 input. During a quiet passage, I turned the system up and could hear, in addition to my CD, the radio station that I had previously been listening to. The radio was much softer than the CD, but noticeable.
To test, I disconnected all sources (including my CD). I then switched from FM (at a soft level) to 5.1 input (which I turned up to near 73). I could hear the FM each time. I was concerned that perhaps the receiver had broken a chassis ground during shipping (a common cause for FM leakage in audio equipment).
I then reconnected my CD, this time to the CD input, and switched between CD at soft, and 5.1 input (with nothing attached there) at loud. I could hear the CD leaking in. I repeated a similar test with the TV connected to Video 2.
Since the leakage wasn't just FM, I concluded that this was not a case of poor grounding. Instead, it appears that there is not adequate isolation on the 5.1 input circuit. Interestingly, setting the volume to MAX gets rid of the leakage, and leakage is most noticeable as you are holding down the Vol- as it passes through 73-68.
However, there is an easy work around: Before switching to 5.1 input, choose a quiet source. The quietest choice is a source mated to an unused digital input.
Note that I did not notice leakage into any other input besides 5.1 Input. To be fair, my much loved Denon 2Ch integrated amp also reveals leakage at high volume settings. I don't wish to characterize this as a fatal flaw of the 1050, just an issue which fortunately has an easy work around.