OK I finally had some time to look into my issue. I made sure that the digital coax was secure and watched some moview. Well, I got through Elf with no drop-outs, but not through the next movie.
So, next I will move the coax from Input 1 to Input 2 and see what happens. I just don't get a lot of time for viewing this time of year.
I'll keep you informed as I find out more.