try setting your dvd bitstream to dd or dts.
sounds like a similar problem i had with my 1050 and rca dvd.
sounds like your dvd bitstream is set to pcm.
my friend also had this problem on his sherwood,all i had to do was go in the setup menu in his dvd player and set the bitstream.
after the initial setup,each time you put in a dvd you may have to go to the audio menu and select the mode of choice.
it sounds confusing but it is really simple.