The current update related solely to a component video switching bug. An update released in December (around the time that the 970 started shipping) adjusted the way the 1070 remembers what surround mode the user selected previously for a given input and audio format. There is work in progress to track down a bug relating to the unit (mostly 970's from the feedback that's been showing up in the forum, but I suspect it affects the 1070's equally) losing audio in some cases. This may be what you are experiencing, in which case it would probably be useful to Outlaw for you to report the exact circumstances - make and model of source, coaxial or optical input, audio signal formats (Dolby Digital, PCM, ...), and 1070 input's settings. This thread includes instructions for determining what firmware version you have.

I have two questions that might help. First, do you have auto polling turned on for that input? (It may default to on.) If so, I'd suggest turning it off. Second, what is the surround mode specified in the input menu (in the 970's menu, this is under "INPUT CONFIG" and the specific input being used for TV watching)?