When in "bypass" mode and analog inpout, what really counts is the toggle on the back of the unit. Make sure it's in "bypass" position (the middle position) as well.
If it's in LPF/HPF it will engage the passive analog crossover and frequencies below 80Hz will go to your sub.
The manual makes you believe the toggle on the back applies only to 7.1 bypass mode, but in fact it applies to everything analog in bypass mode, including the tuner.
That toggle on the back of the unit is the equivalent of "analog bass management", if you want, the signal doesn't go through A/D/A phases as DSP circuit is bypassed while still allowing listeners with small speakers and sub use the unit in stereo bypass mode.

Thanks Alex. I'm still experimenting with sub and switch settings. What I found odd is that in bypass on the CD analog inputs, when the sub was engaged (when I had it set to LFE in the menu and the switch set to LPF/HPF) the sound volume was lower than when the sub was set to none.

To update on life with my second 1070...

Within the last week I had two "no-audio" incidents - turned on the 1070, then my tv and satelite receiver and had no sound. Switching to another input and then back again restored audio.

The last incident I had followed the same steps, but instead of no-audio I got muffled, static filled audio. When I switched to another input and back again I got a loud screeching sound from my speakers and quickly turned off the 1070. After turning it back on everything was fine again.

After that incident I downloaded the new official firmware update and installed it. The process was quick and painless. I've used the 1070 several times since then and so far have had no issues of any kind to report.

That's good news. Hopefully with the new firmware you can leave those problems behind you.

Well I've had a couple instances of no-audio with the newest firmware. This was with a satelite receiver connected with analog audio and auto-polling set to off. A couple were remedied by switching to another source and back, and others had to power off and back on to get audio going.

Chas,
Have you noticed any 'no audio' problems with digital audio sources since you did the firmware update?

No, I have not.

Thanks Chas. I'm just wondering since due to WAF (990 too big) I am going to the 970. Other than 5.1 analog in..all my connections are digital.

I have had a new problem with the 1070 that I don't understand. Sometimes when switching between sources the 1070 just freezes. It will not do anything until the power button on the back is turned off and back on. It will not even go to sleep when the front powere button is pushed. This started happening as I began programming a URC MX-850 remote. I suspect it has something to do with the timing of commands send when a macro is running, but haven't been able to isolate the problem. It appears to happen when switching between sources, i.e. digital tv tuner and DVD, which uses analog audio inputs and HDMI-DVI video.

My conviction is that anyone who still believes that the no-audio bug will be solved needs to wake up. It's never going to be solved, especially since 1070 is no longer produced.

When I read Scott's announcement with respect to Model 1070 being phased out, my hope to ever have the issue fixed just disappeared. I nourished that hope, even thought that maybe a recall is imminent given Outlaw customer support reputation. Boy, was I wrong.

The unit does all kind of weird things, albeit sporadically, truth to be said, including some beyond the "just inconvenience" threshold. I was watching a DVD and when the intro section of the DVD, usually in two channels, ended and the audio switched to true 3/2.1, a piercing, very loud sound, started to be emitted from all speakers. I reached for the remote in a state of true panic and depressed the power button. Then I depressed "DVD" and the sweet Outlaw sound resumed. I had to calm down my family and explain that it was not a smoke detector or fire alarm going off, but simply daddy's AV receiver...

Other times the unit simply loses a channel, when switching sources. A source bounce usually fixes it. This is especially annoying, for it's not immediately obvious, like the true "no audio".

Ultimately, the pleasure of that sweet Outlaw sound is now replaced by tension. Would that aggressive sound start again? Are all channels on? It may seem ridiculous, but when a DVD movie really starts I "take a tour" and listen to all speakers to make sure the DSP got them all and nothing is dropped. High tech, isn't it?
This is it. I'm stuck with a unit I haven't returned in the first 30 days because I truly loved and still love its sound and I hoped that the problems will be fixed by upgrades.