Nope, don't have Toy Story 2, U-571, or Episode 3.

I was using The Big Lebowski (the original, not the recent re-release) where there is a flash shortly after the beginning of chapter 2 just as Woo (the second thug) walks down the hallway.

Probably the best reference to work from here is Digital Video Essentials where I have most definitely noted the flashing. I'd need to pull it back out and work out at least one place where it occurs. I've also noted it a few times in the extended edition of LOTR: The Return of the King, but I'd need to go back and find out when they happen.

Though the problem looks to be with the 1070 alone the DVD player I'm using is a Sony DVP-NS300. The discs seem to have a role in this and it may be that the player does as well. Every little bit helps.