I forgot to check the firmware update; will do so after work. I'm having some problems with the video section, so perhaps it is not the latest firmware. I may have to do an update.

Otherwise, this is an incredible sounding receiver. I still can't believe how much of a step-up in quality it is compared to my Harman. I didn't think it would be possible, but there is a significant difference in implementation of Dolby, etc. Outlaw's is better than Harman's. And DPLII is better than the 5 channel Logic 7, no question.

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What was the behavior of the drop-out? Did it simply stop outputting audio at all, or was there just a hiccup? Keep an eye on it, and I'd also be curious to know how you have the bass management switch on the rear panel set.
Thanks for the comments, Gonk!

It may have been a hiccup, as it was at the beginning of the DVD, first track of the Crowded House's debut album on DVD-A. Since then, I have experienced occasional drop outs while watching TV. I've been watching it closely, and it seems to have settled down.

I don't have a sub woofer at the moment, but plan to upgrade with the LFM-1 in the near future.